Yield Chasers Ghost Bitcoin ETFs as Treasuries Steal the Spotlight 📉

Spot Bitcoin ETFs recorded $225.18 million in net outflows on July 24, ending a seven-day inflow streak that had brought in nearly $1 billion, according to Farside Investors data. The single-day redemptions marked the first significant withdrawal since the recent run of positive flows and coincided with U.S. Treasury yields climbing to multi-month highs.

BlackRock's spot Bitcoin ETF, IBIT, accounted for $202.5 million of the outflow, with additional withdrawals from Bitwise's BITB and Fidelity's FBTC. Morgan Stanley's MSBT stood apart, posting $5 million in net inflows on the same session. The shift in flows comes as institutional allocators rotate toward fixed-income instruments, with the 10-year U.S. Treasury yield hitting an 18-month high of 4.71%.

Market participants cited rising oil prices, the ongoing U.S.–Iran tensions, and the imposition of new global tariffs as contributing factors driving the bond rally. The combination of higher yields and geopolitical uncertainty has reduced the relative attractiveness of spot Bitcoin ETF exposure for short-term institutional positioning.

Treasury market dynamics have historically influenced capital allocation decisions across risk assets, and the latest move reflects a measurable repricing of risk premiums. With the 10-year benchmark now at levels not seen since early 2024, the cost of holding non-yielding assets such as $BTC has effectively risen for investors benchmarking against risk-free rates.

Farside Investors continues to publish daily ETF flow data, providing the primary reference for tracking institutional shifts between spot Bitcoin products and traditional fixed-income markets.