The institutional money that poured into U.S. spot Bitcoin (BTC) ETFs over the past two years is now flowing back out, and the trigger has little to do with crypto itself. Rising Treasury yie
The institutional money that poured into U.S. spot Bitcoin (BTC) ETFs over the past two years is now flowing back out, and the trigger has little to do with crypto itself.
Rising Treasury yields have made government debt a more attractive parking spot for large portfolios, and Bitcoin exposure is one of the first things getting trimmed to fund the shift.
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The scale of the move has been building for weeks rather than arriving in one dramatic session. Spot Bitcoin ETFs in the US have shed close to $4.3 billion since the start of June, according to Sosovalue data.
BlackRock's IBIT, the largest fund in the category, has been doing most of the heavy lifting on the way out, its clients have pulled roughly $3.3 billion over that same window, putting the fund behind more than three-quarters of all redemptions across the entire spot Bitcoin ETF market this month.
On June 26, IBIT investors withdrew $444.5 million in a single session, the sharpest one-day pullback the fund has logged all month.
What separates this selloff from a typical risk-off crypto move is the absence of broader panic.
The U.S. Treasury yields climbing higher gives large institutional allocators a straightforward incentive: rotate capital out of a volatile, non-yielding asset and into something now paying more with considerably less risk attached. That is a portfolio math decision, not a loss of conviction in Bitcoin as an asset class.
Bitcoin's price has reflected the pressure regardless of the reasoning behind it. The asset slipped to $58,326 after an earlier attempt to climb past $60,600 stalled out, leaving it stuck below the psychologically important $60,000 mark for now.
Whether this rotation reverses depends largely on where yields go next, not on anything happening inside the crypto market itself.
Related: Billionaire investor reveals key reasons behind Bitcoin's decline
