ETF Outflows Surge by $291M As Inflation Hits 2.9%

• Bitcoin and Ether ETFs shed $291M in outflows following U.S. inflation data.
• Core inflation at 2.9% introduced uncertainty about Federal Reserve rate cuts.

On August 30, 2025, spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) experienced significant outflows of approximately $291 million, a sharp reversal after weeks of steady inflows. The move, reported by multiple outlets, was spurred by newly released U.S. inflation figures that heightened investor concerns over potential Federal Reserve interest rate adjustments.

Ether ETFs led the sell-off, recording $164.6 million in withdrawals and breaking a five-day inflow streak that had previously added over $1.5 billion to these funds. Bitcoin ETFs followed with $126.6 million in net outflows, marking their first daily decline since August 22. Total assets under management (AUM) for Ether ETFs fell to $28.58 billion, while Bitcoin ETFs dropped to $139.95 billion.

Among individual funds, Fidelity’s FBTC and ARK Invest and 21Shares’ ARKB recorded some of the largest outflows, losing $66.2 million and $72.07 million, respectively. In contrast, BlackRock’s IBIT fund attracted $24.63 million in new inflows, highlighting varied responses across funds.

The trigger for these outflows was linked to the release of July’s core Personal Consumption Expenditures (PCE) price index by the U.S. Bureau of Economic Analysis. The core PCE index, the Federal Reserve's favored gauge of inflation, rose 2.9% year-over-year—its fastest pace since February. While the increase met economists’ expectations, persistent pressures like a 3.6% rise in service costs fueled uncertainty about future economic policy.

Prior to the inflation report, markets had been speculating on a potential rate cut by the Federal Reserve in September to boost growth. However, analysts now noted that the Fed faced a difficult balancing act: cutting rates risks reigniting inflation, while maintaining high rates could slow economic progress.

Despite these short-term fluctuations, Ethereum adoption trends are showing larger positive momentum. Corporations now hold an estimated 4.4 million ETH, valued at over $19 billion, representing approximately 3.7% of the total Ethereum supply. This indicates a growing confidence in Ethereum's long-term value as a digital asset.

As of August 30, 2025, at 18:11 UTC, Ethereum (ETH) is trading at $4,360.75, with a 0.642% rise in 24-hour trading volume, according to CoinMarketCap. Meanwhile, Bitcoin (BTC) is priced at $108,785.37, reflecting a 0.375% increase in trading activity as of 18:12 UTC.