US inflation data brought significant volatility to the cryptocurrency market. While spot bitcoin ETFs recorded outflows of $462.7 million last week, ether-linked funds continued their fourth consecutive week of gains. Bitcoin and ether prices themselves fluctuated sharply following the data release.
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Bitcoin ETFs reversed direction after several strong weeks
Bitcoin funds were still attracting billions of dollars in the second half of August. Between August 17 and 21, over $1.9 billion flowed into them, and the following two weeks brought inflows of $924 million and $986 million. Last week, however, the situation reversed. The largest outflow came on Thursday, when investors withdrew $282.7 million from the funds, while on Friday another $13.2 million left.
A significant share of Thursday’s outflow came from the ARKB fund by Ark Invest and 21Shares, which saw $164.3 million leave. The Grayscale Bitcoin Trust also recorded further losses, losing more than $129 million over three days. BlackRock’s IBIT fund, on the other hand, managed the weaker period with relatively milder outflows.
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Ether ETFs benefited from Friday’s capital inflow
Ether funds also started the week weakly, but Friday’s trading significantly changed the overall balance. ETFs linked to ether attracted $216.41 million in a single day, representing a two-week high. BlackRock’s ETHA fund gained the most capital with an inflow of $148.82 million. Ether simultaneously climbed from approximately $2,440 to $2,670 following the inflation data release, before giving back some of the gains.
The divergent performance of bitcoin and ether ETFs may indicate that some institutional investors are shifting their attention toward ether in the short term. However, fund flows alone are not a reliable predictor of future price movements. The market’s further direction may be influenced by the US Fed’s interest rate decisions and regulatory developments in the USA, while moves by major asset managers such as BlackRock will continue to be among the watched indicators of institutional investor sentiment.
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