Bitcoin ETFs see $1.4B outflows as Treasury yields hit 2025 highs
In brief
- Bitcoin ETFs recorded $1.4B net outflows for week ending May 25, largest weekly outflow on record
- Treasury yields surged to 4.67% (10-year) and 5.14% (30-year), highest since early 2025
- Cumulative Bitcoin ETF outflows reached $2.7B since May 7; Ethereum ETFs saw $223M outflows, XRP gained $42M
Outflows accelerate as macro headwinds intensify
Bitcoin's price reflected the pressure, hovering near $76,770 and hitting three-week lows during the stretch. The damage extended beyond a single day — cumulative outflows from Bitcoin ETFs have ballooned to approximately $2.7 billion since May 7. On one particularly brutal session, Bitcoin ETFs recorded redemptions of $648.6 million.
It wasn't just Bitcoin. Ethereum ETFs posted $223 million in outflows for the same week, though XRP ETFs pulled in $42 million in net inflows during the exact same period, suggesting some rotation within institutional crypto exposure.
Treasury yields drive the narrative
The culprit is unmistakable: rising rates. The 10-year Treasury yield climbed to 4.6653%, its highest level since January 2025, while the 30-year hit 5.14%. These moves reflect a fundamental shift in macroeconomic expectations. Investors are pricing out the prospect of near-term Fed rate cuts, which had fueled optimism for risk assets earlier in May.
CoinShares and SoSoValue, two firms tracking digital asset fund flows, both noted that the outflows are driven by macroeconomic forces rather than crypto-specific factors. That distinction matters — it signals that Bitcoin's integration into traditional finance now means its price action follows the same macro script as equities and bonds.
What's next for institutional exposure
BlackRock's Bitcoin ETF holdings have been notably affected, which carries weight given the fund's historical inflow dominance. The outflows represent a sharp reversal from the momentum these products enjoyed earlier in May, underscoring how quickly institutional sentiment can pivot when Treasury yields move.
For investors tracking Bitcoin ETF positions, the variable to watch isn't on-chain metrics or mining difficulty — it's the 10-year Treasury yield.
