Spot bitcoin ETFs recorded $5.4 billion in net outflows in the first half of 2026, marking their first negative half-year since launch. DWF Labs says the reversal reflects weaker crypto sentiment as capital and attention shift toward AI.
Key Takeaways
Spot bitcoin ETFs lost $5.4B in H1 2026, their first negative half-year since launch.DWF Labs said AI drew capital away as Blackrock’s IBIT posted $5B in outflows.Ether ETFs lost $1.47B, while DWF Labs expects crypto infrastructure to keep growing.The first quarter opened weak. January erased $1.6 billion in flows, and by Feb. 23 cumulative net inflows had fallen to $53.8 billion. That represented a $2.8 billion drawdown in less than eight weeks.
April briefly restored confidence. Cumulative flows recovered to $59.8 billion by May 6, helped almost entirely by Blackrock’s IBIT, which DWF Labs said accounted for 99.6% of the category’s April inflow. But the recovery faded quickly.
For much of the ETF era, IBIT and other lower-cost funds absorbed outflows from GBTC, which has lost $27.1 billion because of its 1.5% fee and years of trapped holders exiting after conversion.
That pattern broke in 2026.
IBIT recovered in March and April, then saw heavy redemptions in May and June. DWF Labs said the fund posted $5 billion in net outflows across those two months alone, more than all previous IBIT outflow months combined.
Ether ETFs Follow the Same PathStill, inflows into yield-bearing products were not enough to offset broader selling.
