In early August 2025, U.S. spot Bitcoin and Ethereum exchange-traded funds (ETFs) experienced substantial outflows, marking a reversal after a period of strong inflows in July. This shift is largely attributed to investor concerns over potential tariffs and a perceived slowdown in the U.S. economy. On August 1, 2025, Bitcoin ETFs saw net outflows of approximately $812 million, while Ethereum ETFs experienced outflows totaling $152 million, ending a 20-day streak of inflows for Ethereum ETFs.
The outflows coincided with a broader market downturn, pushing Bitcoin's price below $112,500 and Ethereum's below $3,380. By August 7, however, both assets showed signs of recovery, with Bitcoin trading at $115,603 and Ethereum at $3,791.88. Analysts attribute the current market caution to concerns over tariffs, particularly those impacting trade with China, Canada, and Mexico, and the latest ISM Non-Manufacturing PMI data, which indicated slowing growth, declining employment, and rising prices. Despite these short-term outflows, the long-term outlook for crypto ETFs remains positive, supported by ongoing regulatory developments, including the SEC's recent approval of "in-kind" creations and redemptions for crypto exchange-traded products, which is expected to enhance efficiency and reduce costs.
Zach Pandl, head of research at Grayscale, expressed optimism, noting that spot crypto ETPs are benefiting from both macro demand for Bitcoin and regulatory changes likely to accelerate blockchain adoption. He anticipates these trends will continue throughout the latter half of 2025, with potential catalysts like the approval of staking ETFs expected to drive further inflows.