US Bitcoin and Ethereum ETFs see first half‑year net outflows as AI draws capital

During the first half of 2024 the US spot Bitcoin (BTC) and Ethereum (ETH) exchange‑traded fund (ETF) market recorded its first net outflows since inception. According to DWF Labs, about $5.4 billion withdrew from BTC ETFs, with BlackRock’s IBIT alone losing roughly $5 billion, while ETH ETFs fell about 28 % from their 2023 peak, bringing cumulative inflows down to $10.9 billion. The shift is attributed to investors reallocating funds toward the artificial‑intelligence sector, which has dominated market attention.

At the same time, Bitcoin’s price remained resilient despite heightened US‑Iran tensions in the Strait of Hormuz, trading around $63,000. Analysts note that institutional flows, especially from spot‑ETF products, now play a larger role than geopolitical shocks in price movements. Forecasts range from short‑term resistance near $67,300 to long‑term targets up to $150,000 if current inflow trends resume.