Bitcoin Rally Fuels Spot ETF Inflows as Treasury Yields Rise
Bitcoin's weekly rally has been the strongest in years, with the cryptocurrency rising 23% and challenging its reputation as a high-beta stock proxy.
The unusual combination of price movements came as Treasury Secretary Scott Bessent announced plans to double the size of Treasury buybacks for longer-dated bonds, pushing the 30-year yield lower.
However, the bond market later reversed most of that move, while Bitcoin and gold continued to rise. This divergence is notable because historical data show that previous weeks when Bitcoin gained more than 15% while stocks fell were accompanied by falling 30-year Treasury yields.
This time, the 30-year yield actually rose 1 basis point.
The rally has already been reflected in the US spot Bitcoin ETF market, with $1.92 billion in net inflows last week, according to Farside Investors data.
BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) accounted for nearly 70% of those inflows, with a single day pulling in $503 million.