Spot Bitcoin ETFs recorded a net outflow of over $225 million on July 26, snapping a nearly two-week run of inflows. The move comes as institutional investors rotate into U.S. Treasuries, with yields hitting an 18-month high. Rising oil prices tied to the US-Iran conflict and fresh tariffs from the Trump administration are also pushing capital out of risk assets.
Yields hit 18-month high
The 10-year Treasury yield climbed to levels not seen since early 2025, making government bonds more attractive relative to crypto. The outflow from Bitcoin ETFs — the largest single-day pullback in weeks — suggests fund managers are rebalancing portfolios toward safer income streams. The shift isn't subtle: the $225 million exit erased roughly a third of the gains accumulated during the prior inflow streak.
Tariffs and oil add pressure
Trump's latest round of global tariffs, announced earlier this month, is still rippling through markets. Combined with escalating tensions in the Middle East — oil prices have spiked as the US-Iran standoff drags on — the macro picture has turned decidedly risk-off. Bitcoin, often touted as a hedge, has been trading more like a high-beta tech stock in recent months, and the ETF flows reflect that.
ETF streak snapped
The outflow ends a 13-day stretch where spot Bitcoin ETFs pulled in steady capital, a run that had buoyed sentiment after a sluggish spring. The sudden reversal caught some traders off guard, though the catalyst — rising real yields — is a familiar one. The question now is whether this is a one-day blip or the start of a broader pullback.
All eyes are on next week's Federal Reserve meeting and any further escalation in tariff talks. If yields keep climbing, more institutional money could flow out of crypto ETFs and into bonds. For now, the streak is broken, and the market is watching to see if buyers step back in.
