US Inflation Spurs Bitcoin ETF Outflows, Ethereum ETFs Persist
Bitcoin ETF outflow continues as Powell refuses to slow down speed and altitude inflation triggered a pullback from institutional investors. However, the Ethereum ETF market performed well, showing strong confidence and investors’ demand for dipping sauces.
It may indicate that high inflation will reduce investment in the entire crypto market, but other factors can overcome this bearish headwind.
Bitcoin ETF feels inflation
Since seconds The first approved Bitcoin ETF In 2024, they herald a series of convergences between the cryptocurrency industry and traditional finance. In some ways, cryptocurrencies benefit a lot It counts as one of the most successful ETFs of all time. However, this kind of market entanglement can sometimes have negative effects, as shown by the recent outflow:
![Bitcoin ETFS daily net inflow](https://i0.wp.com/beincrypto.com/wp-content/uploads/2025/02/image-125.png?resize=814%2C253&ssl=1)
Yesterday, the outflow of the Bitcoin ETF market was $56.76 million, and the total flow this week was $243 million. Considering that these funds are Towards a dramatic recovery Less than a month ago.
But BTC ETFs saw their The first week of net outflow in 2025 Last week, the outflow since then continued.
Some factors in the broader market help explain this phenomenon. Top analysts predict that U.S. inflation and economic policy will have one Important role in the cryptocurrency marketthis prediction has been realized. yesterday, Jerome Powell rejects President Trump’s plan Use lower costs to reduce inflation.
Powell’s decision does have some positive crypto factors, but in the short term, this makes investors very clever. U.S. inflation climbs to 3% This morning, the capital was caused to be returned from Bitcoin and its ETF markets.
However, these factors have not stopped Ethereum ETFas they saw the inflow of $12.58 million yesterday.
![Ethereum ETF inflow](https://i0.wp.com/beincrypto.com/wp-content/uploads/2025/02/Screenshot-2025-02-12-at-10.14.21-AM.png?resize=814%2C289&ssl=1)
Disadvantagely, the ETF category is actually being acquired from the potential dilemma of its assets compared to Bitcoin. Last week, these products See the transaction volume is very large When investors try to buy dipping sauce. Ethereum has been falling since then Flow ETF to a two-month height.
In short, inflation and other broad market factors have triggered a brief pullback for Bitcoin ETFs, but they are not the only ones. For Ethereum, there seems to be strong short-term confidence.
this Upcoming Pectra upgrade In March, institutional interest recently purchased the largest altcoins from the world’s free finance backed by Donald Trump. Therefore, as long as the ETH is below $3,000, the U.S. spot Ethereum ETF market may continue to see net inflows.
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