JPMorgan

Bitcoin ETF

Bitcoin

when

Spot

The institutional money that poured into U.S. spot Bitcoin (BTC) ETFs over the past two years is now flowing back out, and the trigger has little to do with crypto itself.&nbsp;
Rising Treasury yields have made government debt a more attractive parking spot for large portfolios, and <a href="https://www.thestreet.com/crypto/markets/bitcoin-is-not-dead-veteran-trader-says-dont-mistake-a-bear-market-for-the-end" rel="noopener noreferrer nofollow">Bitcoin exposure</a> is one of the first things getting trimmed to fund the shift.
<a href="https://www.thestreet.com/crypto/markets/shark-tanks-kevin-oleary-reveals-bitcoins-forever-price-action" rel="noopener noreferrer nofollow">Related: Shark Tank's Kevin O'Leary reveals Bitcoin's forever price action</a>
<h2 id="a-month-of-steady-bleeding">A month of steady bleeding</h2>
The scale of the move has been building for weeks rather than arriving in one dramatic session. Spot Bitcoin ETFs in the US have shed close to $4.3 billion since the start of June, according to Sosovalue <a href="https://sosovalue.com/" rel="noopener noreferrer nofollow">data</a>.
BlackRock's IBIT, the largest fund in the category, has been doing most of the heavy lifting on the way out, its clients have pulled roughly $3.3 billion over that same window, putting the fund behind more than three-quarters of all redemptions across the entire spot Bitcoin ETF <a href="https://www.thestreet.com/crypto/markets/bitcoin-demand-has-been-negative-for-208-days-heres-why-this-analyst-says-it-matters" rel="noopener noreferrer nofollow">market this month</a>.
On June 26, IBIT investors withdrew $444.5 million in a single session, the sharpest one-day pullback the fund has logged all month.
<h3 id="trending-on-thestreet-roundtable">Trending on TheStreet Roundtable</h3>
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<h2 id="yield-not-sentiment-drives-the-exit">Yield, not sentiment, drives the exit</h2>
What separates this selloff from a typical risk-off crypto move is the absence of broader panic.&nbsp;
The U.S. Treasury yields climbing higher gives large institutional allocators a straightforward incentive: rotate capital out of a volatile, non-yielding asset and into something now paying more with considerably less <a href="https://www.thestreet.com/crypto/markets/bitcoin-is-falling-with-gold-but-this-legendary-analyst-says-real-reason-may-surprise-investors" rel="noopener noreferrer nofollow">risk attached</a>. That is a portfolio math decision, not a loss of conviction in Bitcoin as an asset class.
Bitcoin's price has reflected the pressure regardless of the reasoning behind it. The asset slipped to $58,326 after an earlier attempt to climb past $60,600 stalled out, leaving it stuck below the <a href="https://www.thestreet.com/crypto/markets/bitcoin-demand-is-gone-for-46-days-heres-what-this-analyst-says-investors-should-know" rel="noopener noreferrer nofollow">psychologically importan</a>t $60,000 mark for now.
Whether this rotation reverses depends largely on where yields go next, not on anything happening inside the crypto market itself.
<a href="https://www.thestreet.com/crypto/markets/billionaire-investor-reveals-key-reasons-behind-bitcoins-decline" rel="noopener noreferrer nofollow">Related: Billionaire investor reveals key reasons behind Bitcoin's decline</a>

Wall Street's Bitcoin funds just logged their worst stretch in months

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