Bitcoin ETFs See $196M in Outflows for Fourth Day Amid Stagflation Concerns; Ether ETFs Attract Inflows
Investors pulled $196 million from U.S.-listed spot bitcoin ETFs on Tuesday, marking the fourth consecutive day of outflows as stagflation concerns rattled markets. The latest redemptions were led by Fidelity’s FBTC and BlackRock’s IBIT, according to data from SoSoValue.
The outflow streak, now the longest since April, began last Thursday and has totaled over $1.45 billion. It coincided with deteriorating macroeconomic data, particularly the U.S. ISM Services PMI report, which signaled rising inflationary pressures, weakening employment, and growing trade headwinds—classic markers of stagflation.
Bitcoin fell more than 1% to a low of $112,650 before stabilizing near $114,000. U.S. equities also came under pressure, with the Nasdaq Composite sliding 0.7%, erasing Monday’s gains.
“Stagflation fears triggered by the ISM report are weighing heavily on risk sentiment,” analysts from LondonCryptoClub noted on X, highlighting contracting employment, weak demand, and rising prices. “This environment complicates the Fed’s ability to respond with rate cuts.”
Despite the market pullback, expectations for monetary easing are rising. Bloomberg data shows options tied to the Secured Overnight Financing Rate (SOFR) are now pricing in three potential rate cuts by year-end, totaling 75 basis points, driven by weak labor market data and slowing growth indicators.
Ether ETFs Gain Momentum on Regulatory Clarity
While bitcoin ETFs suffered outflows, U.S.-listed ether ETFs registered $73.22 million in net inflows on Tuesday, breaking a two-day losing streak. The renewed investor interest followed updated guidance from the SEC clarifying that certain staking activities and token rewards do not constitute securities offerings.
According to Nate Geraci, president of NovaDius Wealth Management, the regulatory update clears a key hurdle for spot ether ETFs — though staking functionality may remain excluded for now. “This removes the final roadblock for ETH ETF approval,” Geraci said.
With bitcoin facing macro pressure and ether benefiting from regulatory clarity, investors appear to be rotating capital in search of relative safety and upside potential within crypto markets.
