Bitcoin ETF fund inflows trigger discussions about AI funds switching to cryptocurrencies

The U.S. spot bitcoin ETF continues its momentum of capital inflows, with a net inflow of US$203.1 million in this Saturday trading day

The U.S. spot bitcoin exchange-traded fund (ETF) continues its momentum of capital inflows this week, with a net inflow of US$203.1 million for six consecutive trading days, setting a record since April. At the same time, cryptocurrency-related stocks rallied as investors bet that the U.S. regulatory outlook will improve and artificial intelligence-driven "speculative capital" trading may cool down.

In addition to the momentum of cryptocurrency itself, the market narrative is quietly changing: After driving round after round of gains in the past two years, enthusiasm for artificial intelligence stocks seems to be becoming more selective. Analysts pointed to a retreat in sentiment in the semiconductor market, as measured by the Philadelphia Semiconductor Index (SOX), as investors are distinguishing companies with lasting profitability from companies that still rely largely on growth expectations for pricing.

Core Points

·The U.S. spot Bitcoin ETF has a net inflow of US$203.1 million in six consecutive trading days. Since the beginning of this round of capital inflow cycle, the cumulative total has reached approximately US$930 million.
·The rebound in ETF demand has coincided with the improvement of overall market sentiment, and the cryptocurrency fear and greed index has rebounded from the "extreme fear" range to the "fear" range.
·The promising prospects for cryptocurrency regulation in the United States, coupled with the cooling of the artificial intelligence stock narrative, have jointly promoted the rise of cryptocurrency-related stocks.
·Bitcoin mining stocks benefit from disclosures related to artificial intelligence infrastructure-cloud computing and data center transactions, marking a diversification of their revenue model.
·Bernstein predicts that Robinhood's next stage of growth will be driven more by tokenization and prediction markets than by traditional cryptocurrency trading.

Cash Bitcoin ETF capital inflows reignite key institutional signals

The U.S. spot Bitcoin ETF extended its capital inflow record to six consecutive trading days. The latest round of capital inflows brought in US$203.1 million in new capital, with a cumulative total of approximately US$930 million on the 6th. The new round of buying demand came as Bitcoin prices briefly exceeded US$67,000, and overall market sentiment improved.

In addition, the cryptocurrency fear and greed index has rebounded from the "extreme fear" range to the "fear" range, indicating that risk aversion has become less common among retail investors and emotion-driven participants. Although the inflow has not yet fully reversed previous weakness, it is the longest consecutive net inflow to an ETF since April-an important reference indicator for traders concerned about whether institutional demand is stabilizing.

Data shows that since its launch in January 2024, the cumulative net inflow of U.S. spot Bitcoin ETF has reached US$51.8 billion, and the net assets are US$80.9 billion. However, there is still a deficit of US$4.84 billion in net flows so far this year, indicating that the recovery is still uneven and may fade quickly once capital inflows stop.

Analysts also highlighted a key level traders are looking at: Bitcoin may need to stay above the $65,000 to $65,500 range to consolidate arguments for continued gains, rather than just another brief rally. [TAG

Cryptocurrencies Rally Driven by Regulatory Optimism and Selective AI Buying

The broader rise in digital assets is said to be linked to two main themes: progress towards regulatory clarity in the United States, and signs that AI trading may cool. [TAG

The market rally was linked to optimism over cryptocurrency legislation in the United States, including Treasury Secretary Scott Besant's indication that lawmakers are close to consensus on a Clarity Act that aims to establish a regulatory framework for digital assets. [TAG

In the equity sector, the article noted double-digit gains in cryptocurrency-related stocks, including Coinbase, American Bitcoin, and Cipher Digital. This is important because equity participation often reflects the extent to which investors are willing to extend their exposure beyond pure cryptocurrencies-a sign that they believe there is a reliable path to continued participation in the space rather than treating it as a one-time momentum event.

At the same time, sources believe that artificial intelligence narratives are becoming more discernable. FRNT Financial CEO Stephen Wellette attributed some of the potential opportunities to slowing enthusiasm for artificial intelligence stocks and improving confidence in interest rate expectations. These conditions may be important for cryptocurrencies, as it often competes with AI for the same batch of speculative and venture capital, especially when the market rewards the theme of "growth at all costs."

The decline in the Philadelphia Semiconductor Index (SOX) illustrates this. The article pointed out that the SOX index has fallen into a technical bear market, down more than 20% from its recent high, although it is still higher than its level a year ago. The message for investors: When sentiment on AI infrastructure weakens, capital may look for alternative narratives-including cryptocurrencies-whose expectations and valuations may be less extreme or closer to improving fundamental demand signals.

Miners embrace artificial intelligence infrastructure, transaction flow changes industry narrative

Although Bitcoin's spot market performance is often seen as a major driver of mining stocks, sources emphasize that in this cycle, trading announcements are becoming the core of investors 'attention. According to reports, Bitcoin mining stocks rose sharply after Hut8 and IREN disclosed large-scale artificial intelligence infrastructure agreements.

Sources cited several rising stocks: Hut8, IREN, Cipher Digital, CleanSpark and MARA Holdings, all rose after Hut8 announced it had signed a 15-year,$9.8 billion lease agreement for its artificial intelligence data center campus. The article also pointed out that IREN disclosed a $2.8 billion cloud service contract with artificial intelligence developers.

These announcements reinforce a broader market shift: Miners are increasingly positioning themselves not only as Bitcoin production, but also as computing and data center operators for artificial intelligence workload needs. Sources further pointed out that IREN expects annual recurring revenue from artificial intelligence cloud computing to exceed US$4 billion by the end of 2026, highlighting how the industry is trying to turn infrastructure construction projects into long-term cash flow expectations.

However, this transformation has also raised a series of new concerns. The article reported on Blocksbridge Consulting's estimate that the industry may need approximately $50 billion in additional capital to realize its AI ambitions. In addition, scrutiny of insider stock sales is also increasing-a perspective that could affect investor confidence when companies simultaneously expand their balance sheet exposure and require the market to value their future AI-related revenue streams.

Bernstein: The next phase of Robinhood-tokenization and prediction markets

In addition to spot bitcoin and stocks, sources also highlighted another perspective for institutions on how cryptocurrency-related business models may evolve. According to reports, Bernstein raised Robinhood's price target from $130 to $160 and maintained an "outperform" rating, arguing that the brokerage's long-term growth may be driven by tokenized assets and forecast markets, rather than relying solely on traditional cryptocurrency trading.

According to the article, Bernstein predicts that the market will become Robinhood's fastest-growing business line, with revenue expected to be US$1.7 billion by 2028. It also pointed to tokenization of stocks as a major opportunity and cited Robinhood's Arbitrum based Layer-2 infrastructure as a driving factor in bringing real-world assets to the chain.

This bullish framework is consistent with Wall Street's broad push for tokenized infrastructure, with sources pointing out that companies like Broadridge, Alpaca, Securitize and Cantor Fitzgerald are expanding their use in the blockchain securities space. Although these initiatives are different from spot market adoptions, they represent another path through which regulated digital finance application scenarios may expand-even if retail investors 'enthusiasm for trading fluctuates, potentially expanding demand for cryptocurrency-related services.

In the coming weeks, investors may be watching whether the ETF inflow cycle can last beyond six days and whether Bitcoin can continue to hold the $65,000 to $65,500 range. At the same time, traders may also be watching whether funds continue to flow out of the most crowded AI sector-as the continued easing of sentiment in AI stocks may continue to release speculative funds that previously crowded out other risky assets.