Spot BTC, ETH ETFs see outflows as inflation ticks up under Trump tariffs
Bitcoin and Ether ETFs experienced significant outflows on Friday following the Federal Reserve's report of rising core inflation, partly attributed to President Trump's tariff policies. The ETFs faced a net outflow of $164.64 million, reversing the previous five days of inflows that had totaled over $1.5 billion. Bitcoin ETFs saw $126.64 million in net outflows as total assets under management fell to $139.95 billion for Bitcoin and $28.58 billion for Ethereum. Fidelity's FBTC had the largest single-day outflow of $66.2 million. Despite the rising inflation, the market anticipates a Federal Reserve rate cut if labor data indicates further weakness. The core Personal Consumption Expenditures (PCE) index showed an annualized increase of 2.9% for July. In contrast, Ether spot ETFs have seen a growing adoption among corporate treasuries, with an increase in net inflows observed in August, indicating a renewed interest in Ethereum following its prior underperformance against Bitcoin.
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