ETF Inflows Soar as Bitcoin Retreats Amid Rising Treasury Yields

Crypto exchange-traded funds (ETFs) have seen significant inflows in recent weeks, despite Bitcoin's decline following a surge in U.S. Treasury yields. According to Hilbert Group, $2.39 billion has flowed into ETFs this week, bringing the year-to-date net flows back above zero after reaching a deficit of $5.8 billion in July.

The inflows come as Bitcoin fell 4.3% to $83,500 due to rising Treasury yields, which climbed from around 4.95% to 5.20%. Jesse Marre, senior portfolio manager at Hilbert Group, noted that this pattern of negative developments failing to produce a lasting setback in demand has continued.

Marre identified $89,000 as the level above which Bitcoin could move towards $95,000, while warning that a break below $77,000 would bring renewed selling pressure. The portfolio manager also cautioned against treating calmer trading as evidence that the pressure had ended, noting that yields sitting at highs with suppressed volatility is not the same as resolved pressure.