💸 Bitcoin & Ethereum ETFs Face $290M Exodus After Inflation Shock 🚀

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In a week where the markets played Jenga with investors’ patience, spot Bitcoin and Ethereum ETFs found themselves in a rather awkward position-much like a guest who accidentally spills a glass of claret at a dinner party. The Federal Reserve’s latest inflation report, which revealed core inflation had decided to throw a party of its own, prompted a stampede of capital fleeing ETFs. One might say the markets are now more confused than a man trying to parallel park a limousine.

According to the ever-reliable SoSoValue, Ethereum ETFs experienced a net outflow of $164.64 million on Friday, effectively ending a five-day streak of inflows that had previously exceeded $1.5 billion. It’s as if the funds were told, “You’ve had enough,” by their own investors. Meanwhile, Bitcoin ETFs joined the exodus with $126.64 million in outflows-their first daily retreat since August 22. Assets under management now stand at $28.58 billion for Ethereum and $139.95 billion for Bitcoin. One wonders if the numbers are simply tired of being gawked at.

Big Players Drive Withdrawals From Bitcoin and Ethereum ETFs

Fidelity’s FBTC led the charge with $66.2 million in withdrawals, while ARK Invest and 21Shares’ ARKB collectively coughed up $72.07 million. Grayscale’s GBTC, once the star of the show, saw $15.3 million exit. The only glimmers of hope came from BlackRock’s IBIT, which added $24.63 million, and WisdomTree’s BTCW, which scraped together $2.3 million. Alas, these piddling sums were insufficient to offset the broader trend of investors behaving like startled pigeons.

Tariffs Push Inflation Higher

The outflows coincided with new inflation data that painted a picture of price pressures exacerbated by President Trump’s trade policies. The Fed’s preferred inflation gauge, the core PCE index, rose 2.9% year-on-year in July-the highest since February. Analysts attributed this to tariffs that transformed import costs into a game of “how high can we go?” with Trump imposing a 10% baseline tariff on all imports, plus some targeted duties for good measure. While energy prices offered a faint reprieve, services inflation surged 3.6%, proving that even in a crisis, someone must always be paying more for a haircut.

Markets Still Expect Rate Cuts

Despite the hotter-than-expected inflation report, markets are still betting on a potential Fed rate cut at the next meeting-provided labor data continues its downward spiral. Investors are now debating whether Trump’s trade policies will force the Fed into a balancing act between growth and inflation, all while sipping lukewarm coffee and staring at screens. One might say the central bank has become the world’s most overqualified babysitter.

Ethereum ETFs Show Long-Term Growth Potential

Friday’s sell-off, however, was but a hiccup in Ethereum ETFs’ otherwise meteoric rise. Since their launch in July 2024, assets ballooned from $9.5 billion to $13.7 billion by August. Institutional adoption has also accelerated, with corporate treasuries now holding over 4.4 million ETH-worth $19 billion. It seems Ethereum has finally grown up, despite the occasional tantrum.

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2025-08-30 13:29