DWF Labs says AI boom coincides with Bitcoin ETF’s $5.4 billion loss in first six months
spot Bitcoin Exchange-traded funds (ETFs) posted their first six-month losses, ending the steady accumulation streak that has defined the category since its inception.
According to DWF Labs analysis: Bitcoin ETF The first half of 2026 ended with net outflows of $5.4 billion. The reversal comes after two years of nearly uninterrupted demand, during which cumulative net flows reached $56.6 billion at the beginning of the year.
The first quarter started sluggishly. In January, $1.6 billion in inflows disappeared, and by February 23, cumulative net inflows had fallen to $53.8 billion. This means a loss of $2.8 billion in less than eight weeks.
In April, I temporarily regained my confidence. Cumulative flows had rebounded to $59.8 billion by May 6, supported almost entirely by BlackRock’s IBIT, which accounted for 99.6% of the category’s April inflows, according to DWF Labs. However, the recovery quickly disappeared.
From May 15th to June 3rd, Bitcoin ETF suffered capital outflows for 13 consecutive trading sessions, the longest since the launch of the spot product. The increase drained $4.4 billion from the category, wiping out April’s gains.
IBIT moves from magnet to redemption source
Blackrock’s IBIT continues to dominate Bitcoin ETF by the flow of history. Since its inception, the fund has attracted $60.3 billion in net inflows, which is 3.3 times more than all of Grayscale’s other funds combined, excluding GBTC.
DWF Labs said IBIT has become the organization’s default method. Bitcoin BlackRock spreads its distribution across allocators and investment platforms, giving it higher exposure even though it doesn’t have the lowest fees.
For much of the ETF era, IBIT and other low-cost funds have absorbed outflows from GBTC, which lost $27.1 billion due to 1.5% fees and long-time locked-in holders exiting after conversion.
This pattern broke in 2026.
IBIT rebounded in March and April and saw significant redemptions in May and June. According to DWF Labs, the fund has recorded $5 billion in net outflows in the last two months alone, more than all previous months of IBIT outflows combined.
Ether ETF follows the same path
That wasn’t the only weakness Bitcoin. The Spot Ether ETF also ended the first half of 2026 in negative territory for the first time since its launch, with net outflows of $1.47 billion in 123 trading days. This period included 73 negative days and 49 positive days.
Ether ETF’s cumulative inflows as of June 30 were $10.9 billion, down 28% from its October 2025 peak of $15.1 billion. The October peak also marked this month Bitcoin ETF We started our own 18.4% drawdown.
DWF Labs noted that staked Ether ETFs have been gaining traction since 2025 US regulatory guidance cleared the way for the protocol. staking In certain products. Grayscale enabled staking 21Shares launched with ETHE and its minitrust staking Starting distribution on TETH, Blackrock launched ETHB in March.
Still, flows into higher-yielding products weren’t enough to offset widespread selling.
DWF Labs said institutional and retailer enthusiasm is waning as AI gains a larger share of capital and attention. Still, the company noted that it still has about $80 billion left. Bitcoin ETFMany of them come from investors who previously did not have easy access to BTC exposure.
DWF commented: “This flow reflects broad sentiment towards cryptocurrencies as an asset class. Cryptocurrency fundamentals have never been stronger.”
This message is cautious, not fatalistic. Although the ETF landscape has changed, the infrastructure surrounding cryptocurrencies is deeper than in previous cycles.
