ETF funds continue to flow out, the market is really cooling down, and this adjustment cycle may be longer than expected.

DWF Labs released a report stating that U.S. spot Bitcoin ETFs saw their first semi-annual net capital outflow since listing. In the first half of 2026, net outflows were approximately $5.4 billion, after net inflows were recorded in every prior semi-annual period. The report noted that between May 15 and June 3, spot Bitcoin ETFs recorded net outflows for 13 consecutive trading days, setting the record for the longest streak of capital outflow. BlackRock’s IBIT recorded total net redemptions of approximately $5 billion in May and June combined, changing from the largest source of capital inflows to a source of outflows. Meanwhile, U.S. spot Ethereum ETFs also recorded their first semi-annual net outflow in the first half of 2026 for the first time, with net outflows of approximately $1.47 billion. The report believes that capital flows reflect a cooling demand for crypto-asset allocation, although some funds shifted to support staking yields…