DWF Labs says AI growth coincides with Bitcoin ETF’s $5.4 billion loss in first six months
spot Bitcoin Trade-traded funds (ETFs) posted their first six-month losses, ending the regular accumulation streak that has outlined the class since its inception.
In line with DWF Labs evaluation: Bitcoin ETF The primary half of 2026 ended with internet outflows of $5.4 billion. The reversal comes after two years of practically uninterrupted demand, throughout which cumulative internet flows reached $56.6 billion firstly of the 12 months.
The primary quarter began sluggishly. In January, $1.6 billion in inflows disappeared, and by February 23, cumulative internet inflows had fallen to $53.8 billion. This implies a lack of $2.8 billion in lower than eight weeks.
In April, I quickly regained my confidence. Cumulative flows had rebounded to $59.8 billion by Might 6, supported virtually totally by BlackRock’s IBIT, which accounted for 99.6% of the class’s April inflows, in accordance with DWF Labs. Nevertheless, the restoration shortly disappeared.
From Might fifteenth to June third, Bitcoin ETF suffered capital outflows for 13 consecutive buying and selling classes, the longest for the reason that launch of the spot product. The rise drained $4.4 billion from the class, wiping out April’s good points.
IBIT strikes from magnet to redemption supply
Blackrock’s IBIT continues to dominate Bitcoin ETF by the circulate of historical past. Since its inception, the fund has attracted $60.3 billion in internet inflows, which is 3.3 instances greater than all of Grayscale’s different funds mixed, excluding GBTC.
DWF Labs mentioned IBIT has turn into the group’s default methodology. Bitcoin BlackRock spreads its distribution throughout allocators and funding platforms, giving it greater publicity regardless that it does not have the bottom charges.
For a lot of the ETF period, IBIT and different low-cost funds have absorbed outflows from GBTC, which misplaced $27.1 billion because of 1.5% charges and long-time locked-in holders exiting after conversion.
This sample broke in 2026.
IBIT rebounded in March and April and noticed vital redemptions in Might and June. In line with DWF Labs, the fund has recorded $5 billion in internet outflows previously two months alone, which is greater than all earlier months of IBIT outflows mixed.
Ether ETF follows the identical path
That wasn’t the one weak spot Bitcoin. The Spot Ether ETF additionally ended the primary half of 2026 in damaging territory for the primary time since its launch, with internet outflows of $1.47 billion in 123 buying and selling days. This era included 73 damaging days and 49 optimistic days.
Ether ETF’s cumulative inflows as of June 30 had been $10.9 billion, down 28% from its October 2025 peak of $15.1 billion. The October peak additionally marked this month Bitcoin ETF We began our personal 18.4% drawdown.
DWF Labs famous that staked Ether ETFs have been gaining traction since 2025 US regulatory steering cleared the way in which for the protocol. staking In sure merchandise. Grayscale enabled staking 21Shares launched with ETHE and its minitrust staking Beginning distribution on TETH, Blackrock launched ETHB in March.
Nonetheless, flows into higher-yielding merchandise weren’t sufficient to offset widespread promoting.
DWF Labs mentioned institutional and retailer enthusiasm is waning as AI good points a bigger share of capital and a spotlight. Nonetheless, the corporate famous that it nonetheless has about $80 billion left. Bitcoin ETFA lot of them come from buyers who beforehand didn’t have quick access to BTC publicity.
DWF commented: “This circulate displays broad sentiment in the direction of cryptocurrencies as an asset class. Cryptocurrency fundamentals have by no means been stronger.”
This message is cautious, not fatalistic. Though the ETF panorama has modified, the infrastructure surrounding cryptocurrencies is deeper than in earlier cycles.
