Bitcoin Funds Defy Rising Yields, Attract Record $2.52 Billion

The 10-year Treasury yield reached its highest level since 2002, at 5.31%, but Bitcoin funds attracted a record-breaking $2.52 billion in the week ending September 29, 2026, according to CoinShares. This marks the largest weekly inflow of the year, with crypto investment funds bringing in $3.55 billion. Typically, investors tend to move their money out of non-interest-bearing assets like Bitcoin when government bonds offer high rates, but the recent surge in yields has not deterred fund buyers. Bitcoin has risen about 10% in September, its best performance in over a decade, despite the rising yields.

The 10-year Treasury yield represents the annual return investors earn by lending money to the U.S. government for ten years. This yield influences rates on mortgages, car loans, and corporate borrowing. In September alone, the yield rose 0.55 percentage points, surpassing its previous peak of 5.26% in 2007. Factors like anticipated Federal Reserve rate hikes, high energy prices, and a rising U.S. national debt have contributed to this increase.

Despite the rising yields, Bitcoin performed notably well in September. Its funds experienced a significant influx of capital, with U.S. spot Bitcoin exchange-traded funds (ETFs) bringing in about $2.4 billion within five trading days through September 25. However, a single week of inflows doesn't guarantee sustained demand. This growth could reflect a mix of long-term buyers, traders adjusting short-term positions, and portfolio rebalancing.