A robust week of inflows for cryptocurrency exchange-traded funds (ETFs) came to an abrupt halt last Friday as fresh US inflation data spooked institutional investors. A total of $291,28 million was pulled from US-based spot Bitcoin and Ethereum ETFs, reversing a bullish trend that had seen Ethereum funds in particular gaining significant traction throughout August.
The primary catalyst for the sudden risk-off sentiment was the latest US core Personal Consumption Expenditures (PCE) index report. The index, which is the Federal Reserve’s preferred inflation gauge, registered a 2,9% year-over-year increase in July, marking its fastest acceleration since February. This has dampened market hopes for imminent interest rate cuts, prompting a flight from more speculative, risk-on assets.
Ethereum Leads the Retreat
Spot Ethereum ETFs bore the brunt of the outflows, shedding a total of $164,64 million on Friday. This single-day withdrawal wiped out a portion of recent gains and ended a powerful six-day inflow streak that had funneled approximately $1,876 billion into the funds since August 21. Total assets under management (AUM) for spot Ethereum ETFs consequently slipped to $28,58 billion.
The outflows were spread across several major issuers:
| ETF Issuer | Ticker | Outflow (USD) |
| Grayscale (ETH Trust) | ETH | $61,30 million |
| Fidelity | FETH | $51,00 million |
| Grayscale (ETHE Trust) | ETHE | $28,60 million |
| Bitwise | ETHW | $23,70 million |
Notably, several key players, including BlackRock, 21Shares, VanEck, and Invesco, recorded neutral flows, indicating that the sell-off was not entirely universal across all ETH products.
Bitcoin Sees Divergent Flows Amidst Broader Outflows
Spot Bitcoin ETFs also experienced their first net outflow day since August 22, with $126,64 million exiting the market. This pushed their total AUM down to $139,95 billion.
However, the Bitcoin market displayed a more nuanced picture. While some funds saw significant withdrawals, others continued to attract capital, suggesting a divergence in strategy among institutional players.
Major Outflows:
| ETF Issuer | Ticker | Outflow (USD) |
| ARK 21Shares | ARKB | $72,07 million |
| Fidelity | FBTC | $66,20 million |
| Grayscale | GBTC | $15,30 million |
In a show of continued confidence, BlackRock’s IBIT, the largest spot Bitcoin ETF by assets, bucked the trend by attracting $24,63 million in new inflows. WisdomTree’s BTCW also managed to secure a modest $2,3 million.
Navigating the Week Ahead: Key Levels to Watch
As the new trading week commences, market direction will heavily depend on how investors continue to process the macroeconomic landscape. Persistent inflation fears could lead to further withdrawals, while any signs of economic cooling might reignite the inflow trend.
From a technical perspective, two key price levels are in focus:
- Bitcoin (BTC): The asset is currently trading around $109.910. Maintaining support above the $108.000 mark is crucial for stability. A decisive break and hold above $110.000 is needed to build upside momentum.
- Ethereum (ETH): Currently trading at $4.470, Ethereum faces a critical test. A daily close above $4.500 could signal a return of bullish control, while a drop below the $4.400 support level may indicate further weakness ahead.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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