Bitcoin tanks to $74,300 as spot ETFs bleed $2.26 billion in two weeks
U.S.-listed spot bitcoin exchange-traded funds have seen more than $2.26 billion in outflows over the past two weeks.
What to know:
- Bitcoin has fallen to about $74,300, more than 10% below its early May peak, as rising U.S. and global bond yields sap demand for riskier, zero-yield assets.
- U.S.-listed spot bitcoin exchange-traded funds have seen more than $2.26 billion in outflows over the past two weeks.
- Speculative capital focuses on commodities exposed to potential supply disruptions and to pre-IPO bets on SpaceX.
The sell-off accompanies a notable upswing in U.S. Treasury yields and parallel increases in government bond yields across developed markets, which are reducing appetite for high-risk, zero-yielding assets like bitcoin.
Investors withdrew $1.26 billion from U.S. spot Bitcoin ETFs this week, the largest single-week outflow since January, following roughly $1 billion in outflows the previous week. In total, the funds have seen more than $2.26 billion in redemptions over the past two weeks.
Meanwhile, commodities such as oil, copper, and sulfur are seeing strong flows of speculative money as markets continue to price in potential supply disruptions through the Strait of Hormuz due to the Iran conflict.
One theory also points to capital being redirected toward SpaceX’s anticipated IPO, with several blockchain-based pre-market derivatives tied to the event already seeing millions in trading volume on blockchain-based platforms.
