Bitcoin ETF Inflows Spark Rotation Away from AI Stocks

Bitcoin spot exchange-traded funds (ETFs) have continued their inflow streak, adding $203.1 million over six consecutive trading days. This marks the longest such run since April and brings the total to about $930 million.

The renewed interest in Bitcoin ETFs coincides with a broader improvement in sentiment, as the Crypto Fear & Greed Index moves from 'extreme fear' to 'fear.' The market narrative is shifting, with analysts pointing to a pullback in semiconductor sentiment measured by the Philadelphia Semiconductor Index (SOX).

The SOX index has slipped into a technical bear market, falling more than 20% from its recent high. This decline illustrates how investors are becoming more selective about AI stocks and are differentiating between companies with durable earnings and those still priced primarily on growth promises.

Bitcoin mining equities have also benefited from disclosures tied to AI infrastructure. Companies such as Hut 8 and IREN have announced large AI infrastructure agreements, which has led to a surge in their stock prices.