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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