Bitcoin ETFs See Largest Single-Day Outflow Since June as Treasury Yields Surge
U.S. spot Bitcoin (BITSTAMP:BTCUSD) exchange-traded funds recorded net outflows of $487.1 million on October 7, marking the largest single-day withdrawal of investor capital from these funds since late June. This sudden reversal follows a strong September, during which the cryptocurrency funds attracted $2.65 billion in net inflows. The recent withdrawals have pushed net outflows for October so far to $165 million.
The massive shift of capital is primarily driven by rising yields on U.S. Treasury bonds. On October 8, the yield on the benchmark 10-year U.S. government bond climbed to 5.318% in early trading, reaching its highest level in 24 years. These elevated, low-risk yields make government debt highly attractive to investors, prompting them to pull capital out of highly volatile assets like cryptocurrencies and equities. On October 8, Bitcoin was down 1.18% to trade at $82,290.
Despite the recent pressure, spot Bitcoin funds have maintained a positive net inflow of $717 million for the year. Since their market debut in January 2024, the ETFs have accumulated a total of $57.33 billion in net inflows. Market participants will likely watch whether Treasury yields continue to rise, which could sustain the pressure on digital assets, or if stabilizing bond markets will encourage investors to return to riskier holdings.
Key points
- U.S. spot Bitcoin ETFs experienced net outflows of $487.1 million on October 7, the largest single-day drop since June 25.
- The investment exodus is driven by rising U.S. Treasury yields, with the 10-year government bond yield reaching a 24-year high of 5.318%.
- The recent withdrawals have offset a strong September, bringing net outflows for October so far to $165 million.
- Despite the recent daily outflow, cumulative net inflows into spot Bitcoin ETFs have reached $57.33 billion since launching in January 2024.
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Why are investors pulling money out of Bitcoin ETFs?
Investors are moving capital out of riskier assets like Bitcoin because of rising yields on U.S. Treasury bonds. The benchmark 10-year U.S. government bond yield climbed to 5.318%, a 24-year high, making safer government debt highly attractive.
How much money left U.S. spot Bitcoin ETFs on October 7?
Approximately a dozen U.S. spot Bitcoin ETFs recorded net outflows of $487.1 million on October 7, which represents the largest single-day withdrawal since June 25.
What are the cumulative net inflows for Bitcoin ETFs since January 2024?
Since they began trading in January 2024, spot Bitcoin ETFs have achieved cumulative net inflows of $57.33 billion.