Crypto Market Update: Bitcoin ETFs Lose US$1.46 Billion Amid Rising Stagflation Concerns
August 6, 2025 — The cryptocurrency market experienced notable turbulence this week as Bitcoin exchange-traded funds (ETFs) in the United States suffered substantial outflows, collectively shedding approximately US$1.46 billion since last Thursday. This trend reflects growing jitters among investors amid mounting fears of stagflation and ongoing economic uncertainty.
Bitcoin and Ethereum Price Movements
As of early Wednesday morning (9:00 a.m. UTC), Bitcoin (BTC) was trading around US$114,217, marking a slight decline of 0.8% over the previous 24 hours. Throughout the day, Bitcoin’s price fluctuated between a low of US$112,770 and a high of US$114,830. Technical analysts note that Bitcoin is currently showing support in the US$117,000 to US$118,000 range, with potential to rebound towards resistance levels near US$120,250, albeit contingent on positive market momentum.
Ethereum (ETH) also faced downward pressure, priced at approximately US$3,619.63 — down 1.4% over the same period. Its price saw lows near US$3,557 and highs around US$3,673. Altcoins Follow Broad Market Sell-Off
Other prominent cryptocurrencies reflected similar downward trends:
- Solana (SOL) declined by 3.9% to US$164.44.
- XRP fell 3.8% to US$2.95.
- Sui (SUI) was down 4.2% at US$3.41.
- Cardano (ADA) dropped 3.2%, trading near US$0.7274. Bitcoin ETFs Experience Significant Outflows Amid Stagflation Fears
Spot Bitcoin ETFs in the US saw net outflows for the fourth consecutive day, with nearly US$200 million withdrawn on Tuesday alone. Leading the outflows were Fidelity’s FBTC and BlackRock’s IBIT ETFs, together accounting for the bulk of the US$1.46 billion total.
Investors appear increasingly cautious due to concerns surrounding stagflation—a problematic economic environment characterized by slowing growth, rising inflation, and stagnant employment. The latest Institute for Supply Management (ISM) Non-Manufacturing PMI data revealed weaker-than-expected activity in the US service sector, signaling declining growth and rising prices. This combination tends to negatively impact risk assets such as cryptocurrencies and technology stocks.
At one point on Tuesday, Bitcoin’s price dipped below US$113,000 before a modest recovery. Meanwhile, the Nasdaq Composite Index decreased by 0.7%, mirroring broad market unease. Although market participants are speculating about potential Federal Reserve rate cuts, significant uncertainty about monetary policy remains.
Japan’s SBI Holdings Files First Bitcoin–XRP ETF Application
In other developments, Japanese financial leader SBI Holdings announced it has filed for an ETF incorporating both Bitcoin and XRP, a move that, if approved, would be Japan’s first regulated dual-crypto ETF offering. This product, detailed in SBI’s second-quarter earnings report, aims to provide investors with diversified exposure to two major cryptocurrencies within a single fund—a rarity in global markets.
Additionally, SBI has proposed a Digital Gold Crypto ETF that combines over 50% holdings in traditional gold ETFs with crypto assets backed by gold. This hybrid fund targets more conservative investors seeking crypto market exposure alongside commodity stability. Notably, if approved, this would mark XRP’s first inclusion in a regulated Japanese ETF, as the token still faces regulatory challenges in the US.
SEC Clarifies Regulatory Stance on Liquid Staking
In a significant regulatory update, the U.S. Securities and Exchange Commission’s Division of Corporation Finance clarified that certain liquid staking products do not constitute securities offerings. Specifically, tokenized staking receipt products, such as staked Ethereum derivatives, are not considered investment contracts unless bundled into schemes meeting the legal securities definition.
This clarification is welcomed by many industry participants as it provides regulatory certainty and enables platforms offering protocol-level liquid staking services to operate without requiring SEC registration. Liquid staking allows users to earn staking rewards while maintaining the ability to trade or transfer representative tokens, thereby enhancing liquidity and asset flexibility.
Market analysts and investors alike will be watching closely to see how these economic and regulatory factors influence cryptocurrency valuations and adoption in the coming weeks.
For continued updates on the cryptocurrency market and related investment news, follow @INN_Technology.
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Authors: Giann Liguid and Meagen Seatter
Disclosure: The authors hold no direct investment interest in any companies mentioned.