Bitcoin ETFs Experience $196 Million Outflow Amid Stagflation Concerns

Investors withdrew funds from U.S.-listed spot bitcoin (BTC) exchange-traded funds (ETFs) for the fourth straight trading day due to concerns over stagflation, driven by recent U.S. service sector data.

The 11 ETFs experienced a net outflow of $196 million on Tuesday.
Fidelity's FBTC and BlackRock's IBIT accounted for most of the withdrawals.
The outflow streak began with $114.83 million on Thursday, followed by $812.25 million on Friday and $333.19 million on Monday.
The U.S. ISM Non-Manufacturing PMI indicated inflation, employment weakness, and trade disruptions—all factors contributing to stagflation.
U.S. stocks declined, with the Nasdaq index falling 0.7%. Bitcoin dropped over 1% to around $112,650.
Market sentiments reflected concerns over the Fed's ability to cut rates amid economic slowdowns.

Ether ETFs Register Inflows

In contrast, ether (ETH) ETFs saw inflows of $73.22 million, ending a two-day losing streak.
SEC guidance regarding staking activities likely increased interest in ether ETFs.
This guidance is seen as a precursor to potential approvals for spot ether ETFs that include staking.