Spot Bitcoin ETFs in the US faced a sharp reversal with $225.18 million flowing out during the latest trading session, halting a week-long streak of inflows that had injected nearly $1 billion. The largest outflow came from BlackRock’s Bitcoin ETF (IBIT), which alone saw $202.5 million withdrawn, while Bitwise's BITB and Fidelity's FBTC also recorded declines. On the other side, Morgan Stanley’s MSBT attracted a modest $5 million inflow.
Market Dynamics Amid Rising Treasury Yields
This shift comes as institutional investors pivot toward US Treasury bonds, drawn by rising yields. The 10-year US Treasury yield climbed to 4.71%, reaching its highest level since early 2025. This surge was influenced by escalating oil prices and ongoing geopolitical tensions stemming from the US-Iran conflict.
The recent sell-off in spot Bitcoin ETFs contributed to a more than 3% drop in BTC price over two days, dragging it down from a near $67,000 peak. The downturn also reflects uncertainty around delays in passing the Clarity Act before the August recess, impacting investor sentiment.
Meanwhile, economists like Peter Schiff highlight that the 30-year Treasury yield has also surged, hitting 5.18% a peak not seen since 2006. These rising yields weigh on financing costs and may pressure government spending. Additional concerns stem from new global tariff measures introduced by the Trump administration, which fuel worries about strained relationships with major trading partners.
As Treasury yields attract more capital, Bitcoin ETFs are feeling the impact: outflows rising sharply last session and investor preferences clearly shifting. This dynamic shows how traditional assets can influence digital currency markets amid global economic and political uncertainty.
This content is for informational purposes and does not constitute financial advice.
