Bitcoin ETFs lost more than $ 800m in April while institutions cling to bonds in the middle of tariff volatility
‘Sell bonds, buy Bitcoin,’ stated A popular social media account last week, which boasts the sentiment of many crypto advocates who believe that the volatility of tariffs induced in the US treasury market-a global financial foundation-there is a Damage revealed of dollar denomination financial system. However, institutions do not buy this narrative.
Like Monday, the 11 US listed in the Bitcoin ETFs, considered a proxy for institutional activity, is on track to register the second highest aggregate monthly flow of more than $ 800 million, According to Sossovalue sossovalue. The funds exploded a record of $ 3.56 billion in February and $ 767 million in March.
Meanwhile, three -month Treasury Bills auctioned Monday have drawn strong demand from institutions. According to Data Source CME, the US Treasury Sold $ 80 billion in three months bill At a interest rate of 4.225%, from the past 4.175%. Similarly, this is, It sold $ 68 billion At a six-month bill at a slightly higher-than-vigorous interest rate of 4.06%.
However, the bid-to-cover ratio, which represents the number of bids received in connection with the number of bids received, for the three-month bill increased to 2.96 from 2.82. In other words, for every three -month bill offered, nearly 3x more bids were received. The ratio for the six -month bill rose marginally to 2.90 from 2.79.
Strong raids indicate that institutions are still viewing US debt as a shelter. T-bills are highly liquid and are considered low risk, making them preferred choice for collateral in the repo market (repurchase). In a repo transaction, one party sells T-bills or other security to another, agrees to re-buy them later, allowing the seller to access short-term funds.
Institutions usually park money on T-bills when the economic perspective is unsure, calling for flexibility in investments rather than commitment to long-term positions.
President Donald Trump’s entire trade war against China and other major trading partners has rated uncertainty on a scale with the possibility of a sudden blackout in the corporate income guide on Wall Street. According to Inc. .
Meanwhile, the odds of the US retreat increased above 50% on betting platforms, including raised Japanese bond yield Additional complex items for risk ownership.
