Cryptocurrency 'Hot Money' Fleeing to AI and Semiconductor Plays

The flow of 'hot money' from cryptocurrencies to other assets has become increasingly evident. According to data, Bitcoin's performance over the past year has been significantly lower than that of the iShares Semiconductor ETF (SOXX). While Bitcoin is down by 48.9%, SOXX has seen a gain of 119.9%.

The migration of money from cryptocurrencies to AI and semiconductor plays also shows in fund flows. Between July last year and June this year, spot Bitcoin ETFs saw an outflow of $3.1 billion, while the four largest semiconductor ETFs experienced an inflow of $21 billion.