Spot Bitcoin ETFs See $1.4B Weekly Outflows as Treasury Yields Climb

US spot Bitcoin ETFs posted their weakest week in months, recording about $1.4B of net outflows in the seven days through May 25. The driver was macro, not crypto-specific. A jump in US Treasury yields has undercut expectations for near-term Federal Reserve rate cuts, pushing institutions toward a more risk-off stance. Flow data underscored the reversal. The week included at least one single-day redemption of more than $648.6M. Since May 7, cumulative outflows from spot Bitcoin ETFs have reached roughly $2.7B, following a strong inflow run earlier in the month. Rising yields are also reinforcing a broader shift: with spot ETFs tying Bitcoin more closely to traditional markets, Treasury moves and Fed policy are increasingly influencing crypto allocations alongside sector-specific factors. Not all crypto ETF flows were negative. XRP ETFs drew around $42M in net inflows over the same period, standing out as Ethereum ETFs also saw withdrawals. Major Bitcoin ETF issuers including BlackRock's IBIT, Fidelity's FBTC, and Grayscale's GBTC still oversee sizeable assets. Since the products launched in January 2024, total cumulative net inflows remain near $60B, putting the latest weekly outflow in context. For investors, sustained ETF redemptions can translate into direct selling pressure in the spot market, as issuers may need to liquidate holdings to meet withdrawals. The roughly $2.7B in outflows since May 7 is large enough to weigh on price action. The link between Treasury yield swings and Bitcoin ETF flows has also emerged as one of the market's more consistent signals. The XRP inflow divergence is another trend to watch. Continued rotation into alternative crypto ETFs while reducing Bitcoin exposure could point to a more mature allocation approach, with managers increasingly differentiating among crypto assets much as they do across individual equities.