Crypto ETF Inflows Face Treasury Yield Hurdle in Upcoming Auctions

The recent surge in crypto ETF inflows has reached $1.61 billion over four consecutive sessions, according to Farside Investors. This comes at a time when the US Treasury is offering investors a 2.973% real yield for nearly three decades through its long-duration bonds.

Bitcoin's price has risen by 7.2% over the past 24 hours, trading near $77,821 on August 21. However, the rally's durability will be put to the test in the coming days as $183 billion of two-, five-, and seven-year Treasury note auctions take place from August 25 through August 27.

The Treasury's February 2056 TIPS reopening cleared at a real yield 50 basis points above its original-issue yield in February. This has created a competing benchmark for investors, offering a nearly 3% real return on long-duration bonds.