Crypto ETFs draw $2.39 billion as Bitcoin retreats on Treasury yield surge

Crypto ETFs garnered $2.39 billion in inflows despite Bitcoin's 4.3% dip, as rising U.S. Treasury yields impacted its price, dropping to $83,500.

In a surprising twist, crypto ETFs have attracted a whopping $2.39 billion in weekly inflows, even as Bitcoin (BTC) experienced a **4.3% dip** due to rising U.S. Treasury yields. This significant inflow has pushed the 2026 net flows back above zero, according to a recent report by Hilbert Group.

How Did Bitcoin React to the Treasury Yield Surge?

Bitcoin saw its price decline to $83,500 as ten-year Treasury yields climbed from about **4.95% to 5.20%**. The rise in yields often correlates with a drop in risk-on assets, and Marre from Hilbert noted this correlation was once again evident. However, unlike previous instances, the appetite for BTC ETFs remained strong even amid negative market conditions.

What Do These Flows Mean for the Market?

Jesse Marre, a senior portfolio manager at Hilbert Group, highlighted that the recent inflows reversed a year-to-date deficit that had reached **$5.8 billion** in July. This is crucial, as it signals a bounce-back in investor interest in crypto assets after a tough spell earlier this year.

The inflow numbers reveal that the demand for crypto ETFs is resilient. Marre mentioned, “Bitcoin sold off **4.3 percent** on the yield break and the flows still came, which is the same pattern we saw last week of bad news failing to stick.” This indicates that institutional interest may be anchored in long-term strategies irrespective of short-term market fluctuations.

How Are Major ETFs Performing?

According to recent analysis, BlackRock's IBIT led the charge with approximately **$1.16 billion** in inflows, followed closely by Fidelity’s FBTC with **$701.6 million** and ARK 21Shares’ ARKB at **$294.7 million**. Even Morgan Stanley's MSBT garnered **$203.3 million**, showing its largest weekly intake since its launch in April.

These figures are a clear vote of confidence from institutional investors regarding the long-term potential of Bitcoin and other crypto assets, even as Bitcoin trades about **$108 billion** in total ETF net asset value, below its peak of **$152 billion**.

What’s Next for Bitcoin?

Looking ahead, Marre sees the critical breakout level for Bitcoin at $89,000, which could set the stage for further gains reaching up to **$95,000**. Conversely, support is identified at **$80,000**, with a breakdown below **$77,000** potentially triggering renewed selling pressure.

Market sentiment remains cautious but optimistic. The S&P 500 and Nasdaq both saw minor downturns, but March trends seem to indicate a resilient bullish sentiment surrounding crypto. “Although volatility is suppressed, one should not confuse calm trading conditions with the absence of pressure,” Marre cautioned.

What Drives Treasury Yields Higher?

The recent spike in Treasury yields, which Marre attributes to inflation concerns and questions surrounding the sustainability of government finances, caught the crypto market off guard. He stressed that a **25 basis point increase** in yields without a specific catalyst indicates structural issues rather than reactions to economic data.

The broader implication is clear: even as Bitcoin takes a hit, institutional inflows suggest that large investors see an opportunity in the cryptocurrency market.

Key Takeaways

• Crypto ETFs drew in **$2.39 billion** in inflows, reversing a previous deficit of **$5.8 billion**.
• Bitcoin's price dropped **4.3%** to **$83,500** as ten-year Treasury yields surged to **5.20%**.
• Major ETFs like BlackRock's IBIT and Fidelity's FBTC saw significant inflows, indicating strong institutional demand.
• Bitcoin faces a critical resistance level at **$89,000**, with support around **$80,000**.
• Market participants should exercise caution as soaring Treasury yields add pressure to cryptocurrencies.

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