Bitcoin ETFs Drain $225M Amid Rising Treasury Yields

Spot Bitcoin ETFs saw significant outflows on Friday, totaling $225.18 million in net redemptions, according to Farside Investors data from July 24. This marked a shift away from a seven-day period of positive flows that saw nearly $1 billion in inflows.

The BlackRock Bitcoin ETF (IBIT) led the outflows with a $202.5 million withdrawal, followed by Bitwise's BITB and Fidelity's FBTC. In contrast, Morgan Stanley's MSBT recorded $5 million in inflows.

This rotation of capital out of spot Bitcoin ETFs comes as institutional investors seek safer assets amid rising US Treasury yields and geopolitical tensions. The 10-year Treasury yield (US10Y) reached about 4.71% on Friday, its highest level in 18 months.

Economist Peter Schiff warned that the U.S. cannot afford these rates, let alone the much higher rates it will soon be forced to pay, given the country's massive national debt of $39.6 trillion.