Crypto ETF Demand Weakens as Bitcoin and Ether Funds Post H1 Outflows

DWF Labs reports U.S. spot Bitcoin ETFs saw $5.4B in H1 2026 outflows, while Ether ETFs recorded $1.47B in withdrawals.

U.S. spot Bitcoin ETFs recorded their first half-year net outflows since launch, according to DWF Labs. The funds ended H1 2026 with $5.4 billion in net outflows.

The report showed a change in investor demand for crypto exposure. Bitcoin ETFs had recorded net inflows in every previous half-year period since launch.

The weaker trend also reached the Ether ETF market. U.S. spot Ether ETFs posted $1.47 billion in net outflows during H1 2026.

The data pointed to lower demand across major U.S. spot crypto ETFs. It also showed that investors reduced exposure to both Bitcoin and Ether funds.

Bitcoin ETFs Break Earlier Inflow Trend

U.S. spot Bitcoin ETFs had drawn steady demand after their launch in 2024. However, DWF Labs said H1 2026 ended that pattern with $5.4 billion in net outflows. The result marked the first half-year withdrawal period for the category.

The change followed a difficult stretch in May and early June. According to DWF Labs, Bitcoin ETFs logged 13 straight trading days of net outflows. The streak ran from May 15 through June 3.

Before this period, the category had posted net inflows in every half-year period. Therefore, the H1 2026 data showed a clear shift in fund activity. It also showed weaker demand for direct Bitcoin exposure through U.S. spot ETFs.

BlackRock IBIT Sees Heavy Redemptions

BlackRock’s iShares Bitcoin Trust, known as IBIT, was central to the outflow trend. DWF Labs said the fund saw about $5 billion in net redemptions across May and June. That activity reversed its earlier role as a major source of inflows.

IBIT had previously led the U.S. spot Bitcoin ETF market in attracting capital. However, the May and June withdrawals showed that demand also weakened for the largest product. The redemptions added pressure to the wider Bitcoin ETF category.

The report did not point to one single cause for the withdrawals. Instead, it described a broader pullback in crypto ETF demand. As a result, Bitcoin funds moved from steady inflows to half-year net outflows.

Read also: Ethereum Holders Are Under Historic Stress – Is a Major Rebound Next?

Ether ETFs Also Record H1 Outflows

U.S. spot Ether ETFs also posted their first half-year net outflows since launch. DWF Labs said the products recorded $1.47 billion in net withdrawals during H1 2026. This placed Ether ETFs on the same path as Bitcoin funds.

Some capital moved into staking-enabled Ether ETFs during the period. However, that shift did not offset the wider withdrawals from spot Ether funds. The report said overall investor positioning moved toward lower crypto exposure.

Together, the Bitcoin and Ether figures showed weaker demand for major crypto ETFs. The outflows marked a change from earlier periods of stronger fund inflows. DWF Labs said the H1 data reflected reduced exposure across the asset class.

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