• Bitcoin spot ETFs recorded an eighth consecutive day of net outflows, with another $231 million pulled on Wednesday.
  • June's total outflows have reached $4.3 billion, the largest monthly exodus this year, as higher interest rates drive investors toward bonds.
  • Bitcoin is trading near its yearly low, adding to bearish sentiment in the crypto market.

The selloff in Bitcoin exchange-traded funds shows no sign of abating, with investors yanking another $231 million on Wednesday, according to data from CoinGlass. That marks the eighth straight day of net outflows, pushing June's total to $4.3 billion—the steepest monthly decline this year.

The persistent withdrawals come as the Federal Reserve's higher-for-longer interest rate stance boosts the appeal of fixed-income assets, drawing capital away from riskier bets like cryptocurrencies. The yield on the benchmark 10-year U.S. Treasury note has climbed above 4.2% this month, further tilting the risk-reward balance against crypto.

"Investors are rotating into bonds, which offer attractive yields with less volatility," said a portfolio manager at a New York-based hedge fund, who asked not to be named discussing market flows. "Bitcoin ETFs are feeling the pinch."

Bitcoin itself is trading near its lowest level of the year, hovering around $38,500, as the outflow-driven selling pressure compounds broader macro headwinds. The largest cryptocurrency has fallen more than 20% from its March peak.

The outflows are particularly notable given the ETF products' strong debut earlier this year, when they attracted billions in net inflows. The reversal suggests that the initial euphoria has given way to a more cautious assessment, with many investors now questioning the asset's ability to act as a hedge in a rising-rate environment.

Industry participants are watching closely to see if the trend persists. "If rates stay elevated, we could see further redemptions," said an ETF analyst at a major crypto research firm. "But a catalyst—like a rate cut or a regulatory clarity boost—could quickly reverse the flow."

When asked for comment, representatives for BlackRock and Fidelity, two of the largest Bitcoin ETF issuers, declined to discuss fund flows.