Ethereum prices declined in Friday’s trading as pressure weighed on most cryptocurrencies, with investors assessing the latest US inflation data and its implications for Federal Reserve interest rate decisions.
Government data released today showed that the US Personal Consumption Expenditures (PCE) index — the Fed’s preferred inflation gauge — rose sharply in July. Headline PCE increased by 0.2% on a monthly basis and 2.6% year-on-year, both in line with expectations. Core inflation also accelerated due to higher prices for some goods linked to import tariffs.
Traders increased their bets on a 25-basis-point Fed rate cut at the September policy meeting, with odds rising to around 89% from 85% before the data release, according to the CME FedWatch tool.
Ethereum exchange-traded funds (ETFs) in the US recorded strong inflows for the week, sharply outperforming Bitcoin ETFs and highlighting a notable shift in investor sentiment. Data from SoSoValue showed Ethereum ETFs attracted $1.83 billion in inflows between August 21–27, compared with just $171 million for Bitcoin ETFs.
Strong inflows for Ethereum ETFs
In the latest session, Ethereum ETFs posted net inflows of $307.2 million, compared with only $81.3 million for Bitcoin ETFs. The performance marks four straight days of positive flows into Ethereum funds, while Bitcoin funds continue to struggle to sustain momentum.
Since the start of August, Ethereum ETFs have attracted about $3.7 billion, while Bitcoin funds saw outflows exceeding $803 million, including withdrawals of $1.17 billion in a single week. Despite Ethereum’s smaller market capitalization compared with Bitcoin, its ETFs have drawn ten times more inflows in just five trading days.
Institutional momentum favors Ethereum
The strong inflows have coincided with a rally in Ethereum’s price, which recently approached its all-time high near $4,950. By contrast, Bitcoin is trading around $113,000 after briefly dipping to $109,000, posting a 5% monthly loss that has dented interest in its investment vehicles.
Institutional adoption has also tilted in Ethereum’s favor, with companies stepping up purchases while Bitcoin demand has slowed. Assets under management for Ethereum ETFs rose 58% over the past 30 days, compared with a 10.7% decline for Bitcoin funds during the same period.
This trend underscores a clear shift in the investment landscape: while Bitcoin ETFs previously dominated inflows, Ethereum funds are now gaining the upper hand, reflecting growing confidence in Ethereum’s growth potential and its appeal as a preferred institutional investment.
As of 21:09 GMT, Ethereum rose 2.7% to $4,329.1 on CoinMarketCap, though it remains down 10.6% for the week.
