Bitcoin ETFs Bleed $800M: Bonds Are the New Black ๐Ÿค‘

What to know:

  • Despite the crypto crowd yelling “Buy Bitcoin!” from their digital rooftops, institutions are quietly sneaking off to the bond market like teenagers avoiding chores. ๐Ÿƒโ€โ™‚๏ธ๐Ÿ’จ
  • U.S. Treasury bills are the new “it” thing, proving that when the economy gets shaky, everyone wants a safe hug from Uncle Sam. ๐Ÿค—๐Ÿ‡บ๐Ÿ‡ธ
  • With trade wars, recession bets, and corporate earnings playing hide-and-seek, the market is more volatile than a caffeinated squirrel. ๐Ÿฟ๏ธโ˜•

‘Sell bonds, buy bitcoin,’ screamed a social media influencer last week, as if theyโ€™d just discovered the secret to eternal wealth. But institutions, those stoic, spreadsheet-loving creatures, are not buying it. Literally. Theyโ€™re too busy hoarding Treasury bills like theyโ€™re on sale at a Black Friday event. ๐Ÿ›’๐Ÿ’ธ

As of Monday, the 11 U.S.-listed spot Bitcoin ETFs were on track to lose over $800 million in April. Thatโ€™s right, folks, Bitcoin ETFs are bleeding cash faster than a vampire at a blood bank. ๐Ÿง›โ€โ™‚๏ธ๐Ÿ’‰ February saw a record $3.56 billion outflow, and March wasnโ€™t much better at $767 million. Meanwhile, Treasury bills are the belle of the ball, with institutions throwing money at them like confetti at a parade. ๐ŸŽ‰๐Ÿ’ต

The three-month Treasury bills auctioned Monday drew so much demand that the bid-to-cover ratio hit 2.96. Translation: for every bill offered, nearly three times as many bids came in. Itโ€™s like a bidding war at an auction, except the prize is a piece of paper that says, “I owe you.” ๐Ÿ“œ๐Ÿ’ผ

Why the love for T-bills? Theyโ€™re liquid, low-risk, and perfect for collateral in the repo market. In other words, theyโ€™re the financial equivalent of a cozy blanket on a cold night. ๐Ÿ›Œ๐Ÿงฃ Institutions are parking their cash here because, letโ€™s face it, the economic outlook is about as clear as mud. ๐ŸŒง๏ธ๐Ÿคทโ€โ™‚๏ธ

Meanwhile, President Trumpโ€™s trade war has turned Wall Street into a guessing game. Corporate earnings guidance is disappearing faster than free snacks at a tech conference. ๐Ÿ•๐Ÿ“‰ BofAโ€™s 3-month guidance ratio has fallen to 0.4x, its weakest since April 2020. And with U.S. recession odds now above 50%, risk assets are sweating more than a marathon runner in a sauna. ๐Ÿƒโ€โ™‚๏ธ๐Ÿ”ฅ

So, while the crypto crowd keeps shouting, “To the moon!” institutions are quietly whispering, “To the Treasury.” ๐Ÿš€โžก๏ธ๐Ÿ“ˆ

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2025-04-15 13:19