Bitcoin ETF outflows ease as Treasury yields strengthen

As traders return after an extended U.S. holiday, two market dynamics could shape bitcoin and other major cryptocurrencies, which are buoyant on hopes for a U.S.-Iran deal. First, U.S. bitcoin spot ETFs saw $228 million in redemptions during the shortened week, marking a sixth straight week of outflows and taking cumulative withdrawals to $5.94 billion, per SoSoValue.

The bleeding has slowed for a second week after $315.84 million left the funds the week before, reversing a run of four consecutive weeks when outflows exceeded $1 billion and grew larger. "While the market has not yet returned to sustained net inflows, the slowdown indicates that the most aggressive phase of institutional de-risking is fading, with flows shifting toward more selective and balanced positioning," Tagus Capital said.

"Overall this points to a stabilizing but still fragile ETF demand backdrop, where investors are no longer accelerating exits but are gradually repositioning capital, providing a potential floor to downside," the firm added.

United States

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