Bitcoin & Ethereum ETF Outflows Surge $291M on Fed Inflation

Published: 2025-08-31 15:34:44 |

Bitcoin and Ethereum exchange-traded funds (ETFs) recorded combined net outflows of $291.28 million on August 29, following hotter-than-expected US core Personal Consumption Expenditures (PCE) data that stoked fears of further Federal Reserve rate hikes. Spot Ethereum ETFs led with $164.64 million in redemptions, ending six straight days of inflows, while Bitcoin ETFs saw $126.64 million withdrawn—their first daily outflow since August 22. Major outflows hit Fidelity’s FBTC, ARK Invest/21Shares’ ARKB and Grayscale’s GBTC, even as BlackRock’s IBIT and WisdomTree’s BTCW saw modest inflows. The core PCE rose 2.9% year-on-year, its highest since February, underscoring persistent inflation pressures from US tariffs. Ethereum and Bitcoin prices declined 6.75% and 5.32% weekly, respectively, before modest 24-hour recoveries. Despite short-term ETF outflows, institutional demand for spot ETH ETFs remains robust: assets under management for Ethereum products climbed 44% in August to $13.7 billion, and corporates now hold 4.4 million ETH (approx. $19 billion). On-chain moves—such as a 2,000 BTC transfer into Hyperliquid for spot ETH—suggest a potential rotation toward Ethereum ahead of a possible Q4 rally.

Bearish

The $291 million net outflows from Bitcoin and Ethereum ETFs reflect intensified selling pressure triggered by stronger-than-expected inflation data and renewed Fed rate hike fears. Spot ETH ETFs saw a halt to a six-day inflow streak, while Bitcoin funds experienced their first daily pullback since late August. Short-term price drops—6.75% for ETH and 5.32% for BTC—highlight market sensitivity to macroeconomic triggers. However, sustained institutional demand for spot Ethereum ETFs, rising assets under management and strategic on-chain transfers point to longer-term bullish fundamentals. In the immediate term, elevated ETF outflows and inflation concerns are likely to weigh on crypto prices before fundamental adoption narratives potentially drive a recovery.