Bitcoin ETF Outflows Slow Down Amid Rising Fed Rate Hike Expectations

The outflow of funds from Bitcoin spot exchange-traded funds (ETFs) in the US has slowed down for the second consecutive week, but still totals $5.94 billion since May. According to SoSoValue, the ETFs lost another $228 million last week. This decline follows a slowdown from the prior four weeks when outflows exceeded $1 billion each week and grew larger with time.

Tagus Capital said in an email that while the market has not yet returned to sustained net inflows, the slowdown indicates 'the most aggressive phase of institutional de-risking is fading.' The firm believes flows are shifting toward more selective and balanced positioning, providing a potential floor to downside. However, this does not necessarily mean a convincing BTC price recovery in the short term.

The decoupling of the US two-year Treasury yield from WTI crude oil futures indicates that Fed rate-hike expectations have replaced oil and geopolitical headwinds as a risk for assets, including cryptocurrencies. The yield has strengthened to 4.21%, its highest since February 2025, while oil prices have collapsed by nearly 20%.