Bitcoin ETFs Post First Negative Half With $5.4 Billion in Outflows, DWF Labs Says

DWF Labs Says AI Boom Coincides With Bitcoin ETFs’ First $5.4 Billion Half-Year Loss

Spot bitcoin exchange-traded funds (ETFs) person recorded their archetypal losing half-year, breaking a streak of dependable accumulation that had defined the class since launch.

According to analysis by DWF Labs, bitcoin ETFs ended the archetypal fractional of 2026 with $5.4 cardinal successful nett outflows. The reversal came aft 2 years of mostly uninterrupted demand, during which cumulative nett flows had reached $56.6 cardinal astatine the commencement of the year.

The archetypal 4th opened weak. January erased $1.6 cardinal successful flows, and by Feb. 23 cumulative nett inflows had fallen to $53.8 billion. That represented a $2.8 cardinal drawdown successful little than 8 weeks.

April concisely restored confidence. Cumulative flows recovered to $59.8 cardinal by May 6, helped astir wholly by Blackrock’s IBIT, which DWF Labs said accounted for 99.6% of the category’s April inflow. But the betterment faded quickly.

From May 15 to June 3, bitcoin ETFs suffered 13 consecutive trading sessions of outflows, the longest specified streak since spot products launched. The tally pulled $4.4 cardinal from the class and erased April’s gains.

Source: DWF Labs

IBIT Moves From Magnet to Source of Redemptions

Blackrock’s IBIT remains the ascendant bitcoin ETF by humanities flows. Since launch, the money has attracted $60.3 cardinal successful nett inflows, oregon 3.3 times the full of each different fund, excluding Grayscale’s GBTC, combined.

DWF Labs said IBIT became the default organization conveyance for bitcoin exposure, contempt not having the lowest fee, due to the fact that of Blackrock’s organisation scope crossed allocators and concern platforms.

For overmuch of the ETF era, IBIT and different lower-cost funds absorbed outflows from GBTC, which has mislaid $27.1 cardinal due to the fact that of its 1.5% interest and years of trapped holders exiting aft conversion.

That signifier broke successful 2026.

IBIT recovered successful March and April, past saw dense redemptions successful May and June. DWF Labs said the money posted $5 cardinal successful nett outflows crossed those 2 months alone, much than each erstwhile IBIT outflow months combined.

Ether ETFs Follow the Same Path

The weakness was not constricted to bitcoin. Spot ether ETFs besides ended H1 2026 successful antagonistic territory for the archetypal clip since launch, with $1.47 cardinal successful nett outflows crossed 123 trading days. The play included 73 antagonistic days and 49 affirmative days.

Cumulative ether ETF inflows stood astatine $10.9 cardinal connected June 30, down 28% from their October 2025 highest of $15.1 billion. That October highest besides marked the period bitcoin ETFs began their ain 18.4% drawdown.

DWF Labs noted that staked ether ETFs person gained traction since U.S. regulatory guidance successful 2025 cleared the mode for protocol staking successful definite products. Grayscale activated staking connected ETHE and its mini trust, 21Shares began staking distributions connected TETH, and Blackrock launched ETHB successful March.

Still, inflows into yield-bearing products were not capable to offset broader selling.

Source: DWF Labs

DWF Labs said organization and retail enthusiasm has cooled arsenic AI captures a larger stock of superior and attention. Even so, the steadfast noted that astir $80 cardinal remains successful bitcoin ETFs, overmuch of it from investors who antecedently lacked casual entree to BTC exposure.

DWF commented that, “The flows bespeak broader sentiment toward crypto arsenic an plus class. The fundamentals for crypto person ne'er been stronger.”

The connection is cautious, not fatalistic. ETF flows person turned, but the infrastructure astir crypto is deeper than successful anterior cycles.