Crypto Market Update: Bitcoin ETFs Shed US$1.46 Billion Amid Stagflation Jitters
August 6, 2025 – As of 9:00 a.m. UTC
The cryptocurrency market experienced notable turbulence this week, with Bitcoin Exchange Traded Funds (ETFs) collectively losing US$1.46 billion over a four-day span amid growing concerns about stagflation in the United States. This downward pressure reflects wider macroeconomic uncertainties affecting risk assets, including cryptocurrencies and technology stocks.
Bitcoin and Ethereum Market Performance
Bitcoin (BTC) was trading at approximately US$114,217, marking a 0.8% decline within 24 hours. During Wednesday’s trading session, Bitcoin’s price fluctuated between a high of US$114,830 and a low of US$112,770. Technical analysts have identified a support zone between US$117,000 and US$118,000, with the potential for a price rebound toward resistance levels around US$120,250, contingent on renewed bullish momentum. However, prevailing cautious sentiment is driven by unclear interest rate trajectories, economic pressures, and sustained ETF outflows weighing on near-term price action.
Ethereum (ETH) also saw a dip, dropping 1.4% over the past day to a trading value near US$3,619.63. Its daily price range spanned from US$3,557.78 to US$3,673. Other notable altcoins reflected similar bearish trends:
- Solana (SOL) declined by 3.9%, priced at US$164.44.
- XRP fell 3.8%, trading around US$2.95.
- Sui (SUI) was down 4.2% at US$3.41.
- Cardano (ADA) saw a 3.2% decrease, valued at US$0.7274. —
Bitcoin ETFs Experience Significant Outflows
Spot Bitcoin ETFs in the United States recorded net outflows for the fourth consecutive day, totaling nearly US$200 million lost on Tuesday alone. Major contributors to this sell-off included Fidelity’s FBTC and BlackRock’s IBIT ETFs. Since last Thursday, these outflows have accumulated to approximately US$1.46 billion.
Market watchers attribute this sell-off to heightened stagflation concerns, sparked by disappointing US service sector data. Specifically, the Institute for Supply Management’s (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) revealed slowing economic growth, declining employment figures, and rising prices—a combination traditionally detrimental to risk assets like cryptocurrencies and tech equities.
Bitcoin briefly slipped below the US$113,000 mark before recovering slightly by midweek, while the Nasdaq Composite Index declined by 0.7% during the same period. Although market participants are increasingly betting on potential Federal Reserve interest rate cuts, considerable uncertainty remains around the timing and extent of such moves.
Japanese Financial Giant SBI Files for Bitcoin–XRP ETF
In a significant development outside the U.S. market, Japan’s SBI Holdings filed for approval of an ETF that would offer exposure to both Bitcoin and XRP. This proposed dual-crypto ETF, disclosed in SBI’s Q2 earnings report, aims to provide a regulated fund vehicle combining assets that are rarely paired in global ETFs.
Additionally, SBI plans to launch the Digital Gold Crypto ETF, which would integrate over 50% exposure to traditional gold ETFs with gold-backed crypto assets. This hybrid structure targets more conservative investors seeking the stability of commodities alongside the growth potential of digital assets.
If approved, SBI’s Bitcoin–XRP ETF would mark the first regulated ETF product in Japan to include XRP, a notable milestone given XRP’s ongoing regulatory challenges in the United States.
SEC Clarifies Liquid Staking Does Not Constitute a Securities Offering
Meanwhile, the U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance issued an important statement clarifying that certain types of liquid staking products do not qualify as securities offerings. This applies specifically to tokenized staking receipt products, such as those representing staked Ethereum derivatives, unless they are part of bundled investment contracts as defined by law.
This clarification offers a regulatory green light to platforms providing protocol-level liquid staking services without the need for registration as securities offerings. Liquid staking allows crypto holders to earn rewards through staking while retaining the flexibility to trade or use a representative token.
Summary
The past week has underscored the complex interplay between macroeconomic concerns and cryptocurrency market dynamics. Bitcoin ETFs have endured significant outflows as stagflation fears intensify, impacting investor appetite for risk. Simultaneously, regulatory clarity on innovative blockchain products like liquid staking and new ETF proposals in Japan signal a maturing blockchain investment landscape.
Market participants are advised to monitor developments closely, particularly the evolving interest rate environment and regulatory guidance, as these factors will likely shape the crypto market trajectory in the near term.
For continuous coverage and real-time updates on cryptocurrency markets and blockchain investing, follow @INN_Technology.
Securities disclosures: The authors hold no direct investment interests in any companies mentioned in this article.
Authors:
Giann Liguid, Writer
Meagen Seatter, Investment Market Content Specialist