$1.61 Billion Inflow into Bitcoin ETF

Over a span of four trading days, $1.61 billion has flowed into the U.S. spot Bitcoin (BTC) ETF. From August 17 to 20, the net inflows were recorded at $297.6 million, $189.3 million, $517.2 million, and $606.3 million respectively. The flow of funds into the ETF has emerged as a key variable in the supply and demand dynamics of BTC. However, the real yield on U.S. long-term Treasury bonds remains high at 2.973%, creating uncertainty regarding the impact of ETF demand on BTC prices. The real yield on 30-year TIPS has increased by 50 basis points over the past six months, which may prompt investors to reassess their asset allocation between risk assets like BTC and long-term Treasuries. Additionally, the supply of Treasuries at the end of August is acting as a burden on the market, with auctions for 2-year, 5-year, and 7-year bonds occurring simultaneously, intensifying competition between risk assets and safe havens. BTC prices have been moving in tandem with ETF inflows, trading around $77,000 during intraday sessions on the 21st. The market interprets that while ETF inflows indicate a buying channel for institutional funds, the high real yields suggest a potential shift of funds into Treasuries.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.