Crypto ETFs Pull In $2.39B as Bitcoin Slips on Rising Treasury Yields

Crypto investment funds attracted $2.39 billion in net inflows over the week, pushing year-to-date ETF flows back into positive territory even as Bitcoin fell 4.3% amid a sharp rise in U.S. Treasury yields.

Bitcoin dropped to around $83,500 on September 28 (now at $83,300) after the yield on 10-year U.S. Treasuries climbed from roughly 4.95% to 5.20%. Yet the rise in bond yields did not prevent investors from continuing to allocate capital to crypto ETFs.

Senior portfolio manager Jesse Marre said the continued inflows stood out because demand persisted despite the broader market pressure.

ETF Inflows Reverse 2026 Losses

The latest $2.39 billion in weekly inflows erased the sector's cumulative 2026 deficit, which had reached approximately $5.8 billion in July, according to Marre.

He pointed to the continued buying as evidence that negative market developments had not yet translated into a sustained withdrawal of investor demand.

Total crypto ETF net asset value stood at approximately $108 billion, still well below its previous peak of $152 billion, when Bitcoin was trading around $125,000.

U.S. Bitcoin ETFs accounted for a significant portion of the latest inflows.

Data from Farside Investors cited in the report showed BlackRock's IBIT attracting about $1.16 billion during the week, followed by Fidelity's FBTC with $701.6 million and ARK 21Shares' ARKB with $294.7 million.

Morgan Stanley's MSBT recorded approximately $203.3 million in weekly inflows, its strongest result since launching in April.

Across the five trading sessions from September 21 to 25, daily inflows remained positive, although they declined from roughly $999 million on Monday to $134.5 million on Friday.

Treasury Yields Put Pressure on Bitcoin

The stronger ETF demand came against a backdrop of rising Treasury yields that weighed on risk assets.

Marre said markets were relatively calm until Wednesday, when the 10-year Treasury yield pushed through previous highs and climbed from around 4.95% to 5.20%.

Rather than pointing to a single economic announcement, he attributed the increase to the existing upward trend in yields, persistent inflation concerns and questions surrounding the sustainability of U.S. government finances.

The higher yields coincided with losses across major markets. The S&P 500 fell 1.2%, while the Nasdaq declined 1.4%. Bitcoin dropped 4.3% to approximately $83,500.

Although equity markets later stabilized, Treasury yields remained close to their highs, leaving uncertainty over whether the pressure on risk assets had fully subsided.

Bitcoin Faces $89,000 Test

Bitcoin's latest decline has left the cryptocurrency in a consolidation phase following its previous rally.

Marre identified a weekly trading range between roughly $82,400 and $87,500. In his view, a break above that range without a new catalyst could bring $89,000 into focus.

A move through $89,000, he said, could potentially open a path toward $95,000.

On the downside, he identified $80,000 and $77,000 as key support levels. A break below $77,000 would, in his assessment, increase selling pressure and weaken the current bullish structure.

Options markets were relatively balanced. Marre put the Bitcoin volatility index, DVol, at around 35 and said pricing between bullish and bearish options remained broadly symmetrical.

Five-delta call options carried implied volatility of approximately 39%, while implied volatility remained below realized volatility. The gap had narrowed, however, from about seven percentage points to between one and 1.5 points as Bitcoin's price swings moderated.

Crypto Regulation Advances Outside Congress

Market developments were accompanied by further regulatory activity in Washington.

Marre highlighted recent SEC guidance concerning the application of securities laws to cryptocurrency tokens. In his assessment, the guidance could provide a framework for revenue distribution to token holders through mechanisms such as staking and buybacks.

His comments come after the CLARITY Act failed to advance in the U.S. Senate, leaving federal agencies with greater importance in shaping parts of the crypto regulatory landscape through their existing authority.

Marre said the SEC and CFTC were moving to establish elements of a framework without waiting for comprehensive congressional legislation.

However, he also highlighted a political risk: rules established through agency action could potentially be revised by a future administration.

That uncertainty adds another layer to the regulatory outlook for U.S. digital-asset markets, particularly while broader legislation remains unresolved.

Economic Data Could Set the Next Market Direction

The next major catalyst could come from U.S. economic data.

The calendar outlined in Hilbert Group's September 28 update included PCE inflation, core PCE, GDP and Chicago PMI, followed by the ISM manufacturing report and nonfarm payrolls.

Those releases could influence expectations around Treasury yields and the Federal Reserve's next policy decisions.

For crypto markets, the latest ETF figures suggest that institutional demand has remained resilient despite the pressure created by higher yields. Whether that demand can continue to absorb macroeconomic pressure may depend on the direction of U.S. rates, economic data, and Bitcoin's ability to hold key technical levels.