Bitcoin ETF Inflows Fuel Signs of AI-to-Crypto Rotation

The artificial-intelligence trade, a dominant magnet for speculative capital for nearly two years, is becoming more selective as investors weigh durable earnings against hype-driven valuations. The Philadelphia Semiconductor Index has fallen more than 20% from its recent high, entering a technical bear market despite remaining above year-earlier levels. That retreat has prompted speculation that some risk capital could rotate toward digital assets, though the evidence is still too limited to establish a lasting shift.

Cointelegraph reported on July 24 that US spot Bitcoin ETFs had posted net inflows for six consecutive trading days, their longest winning streak since April. The funds drew $203.1 million in the latest session and about $930 million over the run, while Bitcoin briefly topped $67,000. Since their January 2024 launch, the ETFs have accumulated $51.8 billion in net inflows and hold $80.9 billion in net assets. Sentiment also improved after Treasury Secretary Scott Bessent said lawmakers were at the “1-yard line” on the CLARITY Act.