Bitcoin Spot ETFs Hit by Billions in Outflows as Treasury Yields Dent Rate-Cut Hopes

US Treasury yields underpin valuations across global markets, and a higher risk-free rate typically raises financing costs while reducing demand for speculative assets. Bitcoin is particularly exposed because it generates no interest, making cash and government debt relatively more attractive when expectations for Federal Reserve tightening increase. The shift can pressure both crypto valuations and the institutional flows that have supported the market.

The US 10-year Treasury yield climbed above 4.75% as rising oil prices and hawkish remarks from the Federal Reserve chair reinforced inflation and tightening concerns. Markets put the probability of a September rate increase at 65.4%, while Barclays and Société Générale revised their forecasts to expect two more hikes this year. Bitcoin spot ETFs also ended a nine-day streak of net inflows, signaling that higher yields are beginning to weaken the cryptocurrency’s funding momentum.

U.S. spot Bitcoin exchange-traded funds have become a key gateway for conventional investors seeking exposure to the cryptocurrency since their 2024 debut. Daily creations and redemptions are closely watched as a gauge of institutional demand and broader risk appetite. The reversal matters because the funds had just attracted nearly $1 billion over seven consecutive sessions, raising hopes that demand was stabilizing after an extended period of withdrawals.

The funds recorded $225.2 million of net outflows on July 23, 2026, according to SoSoValue, ending the seven-session inflow streak. BlackRock’s IBIT accounted for $202.5 million of the total, while Bitcoin briefly fell to $64,600 and the Crypto Fear & Greed Index dropped to 28, firmly in fear territory. Redemptions continued on July 24 with another $240.1 million withdrawn, bringing the two-day outflow to about $465.3 million, of which IBIT contributed nearly $415 million.

U.S. spot Bitcoin ETFs, cleared by the Securities and Exchange Commission in January 2024, give investors regulated brokerage access to Bitcoin without requiring direct custody. Their daily creations and redemptions have since become a closely watched gauge of institutional demand and market liquidity. The latest reversal matters because a prolonged withdrawal of capital had reinforced concerns that risk appetite was fading as Bitcoin traded near cycle lows.

SoSoValue data showed U.S. spot Bitcoin ETFs drew a net $221.7 million on July 2, 2026, ending 10 trading days of outflows totaling $2.73 billion. Fidelity’s Wise Origin Bitcoin Fund took in $166 million and the ARK 21Shares Bitcoin ETF added $91.8 million, while BlackRock’s iShares Bitcoin Trust lost $40.4 million. Bitcoin rebounded above $61,000 and toward $62,000. The recovery later broadened, with the funds attracting $368 million from July 14 through July 16, though that remained small against June’s $4.51 billion exodus.

US spot Bitcoin ETFs are a key channel for traditional investors seeking BTC exposure, and their fund flows are viewed as a gauge of market risk appetite. The funds suffered heavy withdrawals in February 2025. More recently, strong US employment data has dampened expectations for Federal Reserve rate cuts, prompting investors to seek safety and putting funds including BlackRock’s IBIT under selling pressure.

US spot Bitcoin ETFs recorded net outflows of about $1.72 billion in the latest week, or $1.79 billion under some calculations. That marked the largest withdrawal since February 2025 and the second-worst weekly total on record, extending the outflow streak to four weeks. IBIT also posted its biggest weekly loss since its January 2024 launch, with estimates showing its average investor has an unrealized loss of about 40%.

U.S. spot Bitcoin ETFs are a key conduit for institutional capital entering and leaving the crypto market, and their fund flows are widely viewed as a gauge of risk appetite. SoSoValue data showed six consecutive weeks of redemptions brought cumulative net outflows to $5.94 billion. Tagus Capital said the slower pace of de-risking suggests demand is stabilizing but remains fragile.

A June 22, 2026, report showed U.S. spot Bitcoin ETFs recorded $228 million in net outflows the previous week, down from $315.84 million a week earlier and marking a second straight weekly slowdown. However, the U.S. two-year Treasury yield rose to 4.21%, its highest since February 2025. FactSet forecasts core PCE to rise 0.37% month on month and 3.4% year on year, while expectations of Federal Reserve rate hikes have emerged as a fresh headwind.

Hawkish signals from the U.S. Federal Reserve rapidly dimmed expectations for interest-rate cuts this year, prompting markets to reconsider even the possibility of a rate increase. Persistently high rates raise funding costs and reduce the appeal of risk assets. Flows into spot Bitcoin and Ether ETFs have therefore become an important gauge of crypto demand and the durability of the market’s rebound.

The latest data showed that U.S. spot Bitcoin and Ether ETFs recorded combined net outflows of $111 million on the Wednesday cited in the report. The withdrawals came as the Fed turned more hawkish and hopes for rate cuts evaporated, suggesting institutional investors were reducing their crypto exposure. The outflows also created a stronger headwind for the recent rebounds in Bitcoin and Ether prices.

U.S. spot Bitcoin ETFs have served as Wall Street’s main conduit for crypto demand since their January 2024 launch. The sustained withdrawals suggest risk appetite is shifting as AI and semiconductor stocks rally. However, Bloomberg analysts said most existing investors have stayed put and that some of the outflows may reflect the unwinding of arbitrage trades.

The selloff initially set a record with about $2.8 billion in net outflows over nine consecutive trading days, including $1.3 billion in a single week. The streak later extended to 13 trading days, with cumulative outflows reaching $4.4 billion. Bitcoin briefly fell below $70,000, while concerns that Strategy might sell its holdings fueled volatility. Some analysts nevertheless view the persistent outflows as a contrarian indicator that the market may be approaching a local bottom.

The U.S. Securities and Exchange Commission approved spot Bitcoin ETFs on January 10, 2024, allowing investors to gain price exposure through traditional brokerages. Because fund creations and redemptions affect demand in the spot market, flows have become an important gauge of institutional risk appetite and Bitcoin's near-term momentum.

As of Wednesday, June 10, U.S. spot Bitcoin ETFs had recorded combined net outflows of about $1.26 billion over five trading days. The $635 million outflow that day was the largest since late January. Amid concerns about U.S. inflation and caution ahead of the Federal Reserve's June 17 decision, Bitcoin failed to break above its 200-day moving average and retreated to about $79,400.

U.S. spot Bitcoin ETFs are a key channel for traditional investors seeking Bitcoin exposure through brokerages. Their daily subscriptions and redemptions are often viewed as gauges of institutional demand and short-term price momentum. Nearly $1.7 billion of net inflows over the previous five trading days had supported Bitcoin's rebound from recent lows, making the sudden reversal in flows particularly noteworthy.

On Thursday, May 7, 2026, Bitcoin retreated from more than $82,000 the previous day and fell below $80,000, while U.S. spot ETFs recorded $277.5 million in net outflows. Fidelity posted $129 million in outflows and BlackRock recorded $98 million, while Morgan Stanley's MSBT bucked the trend with $7.3 million in inflows.

US spot Bitcoin ETFs give investors exposure to Bitcoin through regulated funds, and their flows are often viewed as a gauge of institutional demand and market risk appetite. The redemptions came as Bitcoin prices rallied, indicating that the gains did not generate broad-based buying and highlighting diverging flows among issuers.

US spot Bitcoin ETFs recorded net outflows of $291 million on April 13, 2026, their largest one-day outflow since March 27. Fidelity's FBTC shed $229 million, while BlackRock attracted about $35 million, bringing its four-day inflows to $482 million. The funds posted another $263 million in net outflows on April 27, ending a nine-day inflow streak.