Key facts
- Spot Bitcoin ETFs experienced net outflows totaling $225.18 million on July 24.
- This outflow ended a seven-day period of positive flows for Bitcoin ETFs.
- BlackRock's Bitcoin ETF (IBIT) led with a $202.5 million outflow.
- The 10-year U.S. Treasury yield rose to approximately 4.71%, a 18-month high.
- The 30-year U.S. Treasury yield reached 5.18%, its highest level since April 2006.
Spot Bitcoin exchange-traded funds (ETFs) experienced significant net outflows totaling $225.18 million on Friday, July 24, marking the end of an almost two-week period of consistent inflows. Data from Farside Investors indicated that BlackRock's Bitcoin ETF (IBIT) saw the largest outflow at $202.5 million, with other funds like Bitwise's BITB and Fidelity's FBTC also recording redemptions. This reversal in sentiment among institutional investors comes as U.S. Treasury yields surge, with the benchmark 10-year yield reaching approximately 4.71%, its highest level in 18 months. The 30-year Treasury yield also climbed to 5.18%, a high not seen since April 2006.
Economist Peter Schiff expressed concern over the rising yields and the substantial U.S. national debt, which has grown fivefold to $39.6 trillion since a period when 30-year yields were similarly high. Market participants are also factoring in escalating geopolitical tensions, particularly the U.S.-Iran conflict, and the potential impact of new global tariffs announced by Trump, which could further strain U.S. trade relations and potentially lead to further Federal Reserve rate hikes. These factors are driving institutional investors to rotate capital out of riskier assets like Bitcoin ETFs and into perceived safer havens such as U.S. bonds and gold.
Market expert BIT (formerly Matrixport) noted that Japan might gradually sell its U.S. Treasury holdings to support the depreciating yen, while China continues to diversify its reserves by reducing its U.S. Treasury holdings in favor of gold. The expectation is that outflows from spot Bitcoin ETFs may persist as institutional capital continues to seek less volatile assets.