Spot BTC and ETH ETFs Experience Outflows Amid Surging Inflation

Spot cryptocurrency exchange-traded funds (ETFs) for Bitcoin and Ether recorded net outflows last Friday amid mixed macroeconomic developments and renewed inflation concerns. According to SoSoValue data, Ether ETFs logged a net withdrawal of $164.64 million, reversing five consecutive days of inflows that had added more than $1.5 billion since early August. Bitcoin ETFs also turned negative, with $126.64 million exiting the largest asset class by AUM, representing the first daily contraction in over a week.

Fidelity’s FBTC fund led Bitcoin outflows with $66.2 million, followed by ARK Invest’s ARKB program which saw $72.07 million exit across its ticker suite. Incumbent vehicles such as GBTC recorded $15.3 million in net redemptions even as certain niche products found modest inflows—BlackRock’s IBIT gained $24.63 million, and WisdomTree’s BTCW added $2.3 million. Despite these headwinds, total assets under management remain robust at $28.58 billion for Ether and $139.95 billion for Bitcoin, reflecting sustained structural demand.

The timing of ETF outflows coincided with release of the personal consumption expenditures (PCE) index for July, which showed core PCE rising 2.9 percent year-over-year—matching consensus but underscoring continued price pressures. Analysts attributed the uptick to residual effects from the U.S. tariff regime, which elevates import costs and pinches core inflation. Although the Fed’s preferred gauge has stabilized relative to June, markets are now repricing rate-cut probabilities, with futures markets indicating roughly a 60 percent chance of a quarter-point reduction by year-end.

Market participants warned that ETF flows often mirror broader risk appetite; a pivot toward safer assets tends to coincide with tactical withdrawals from more speculative segments. However, proponents argue that structural growth drivers remain intact—including integration of DeFi protocols, wider corporate treasury allocations, and evolving regulatory clarity around spot funds. With several issuers preparing product launches for altcoins and thematic baskets, the marketplace is poised for renewed capital rotation as investors calibrate exposure against incoming central bank policy signals and macroeconomic data releases.