AI Crypto Rotation: Are Funds Shifting Toward AI Tokens?

US spot Bitcoin exchange-traded funds (ETFs) extended their streak of inflows into a sixth consecutive session, signaling renewed institutional interest at a time when broader market sentiment is improving. At the same time, crypto-linked equities are posting gains amid expectations that US regulatory progress could help clarify the playing field—and that speculative appetite for AI-related stocks may be starting to cool.

Beyond digital assets, investors are increasingly separating “AI winners” from companies still priced primarily on optimism. That shift matters because money often moves in clusters: when one high-beta trade loses momentum, capital can search for the next opportunity—sometimes back in crypto.

Key takeaways

• US spot Bitcoin ETFs logged six straight days of inflows, bringing total fresh capital to about $203.1 million for the latest session and roughly $930 million across the streak, according to the linked Cointelegraph update.
• Market sentiment improved as the Crypto Fear & Greed Index rebounded from “extreme fear” to “fear,” while Bitcoin’s price briefly moved above $67,000.
• The Philadelphia Semiconductor Index (SOX) moved into technical bear-market territory after a drop of more than 20% from its recent peak, reflecting cooling enthusiasm for parts of the AI trade.
• Analysts pointed to US momentum on the CLARITY Act and commentary from Treasury Secretary Scott Bessent as a factor supporting risk appetite across crypto and crypto-adjacent stocks.
• Bitcoin mining stocks rose on news of major AI-focused data center and cloud infrastructure deals from Hut 8 and IREN.

Bitcoin ETFs extend inflows as sentiment steadies

Spot Bitcoin ETFs in the US continued receiving net inflows, extending a winning run to six consecutive trading days and attracting $203.1 million in fresh capital on the day highlighted by Cointelegraph: Bitcoin ETFs extended their inflow streak.

The inflow sequence adds up to roughly $930 million over six sessions—described in the report as the funds’ longest streak since April—occurring alongside a move in Bitcoin that briefly pushed above $67,000. The timing also overlaps with a notable improvement in broader risk sentiment, with the Crypto Fear & Greed Index recovering from “extreme fear” to “fear.”

Even so, the bigger picture remains mixed. Since the launch of the US spot Bitcoin ETFs in January 2024, the funds have accumulated $51.8 billion in cumulative net inflows and hold $80.9 billion in net assets, but they are still down $4.84 billion on a year-to-date net flow basis, per the figures included in the source article. Analysts cited in the report argue that Bitcoin likely needs to sustain trading above the $65,000–$65,500 area to strengthen the case for a durable bullish breakout.

For investors, the usefulness of an inflow streak isn’t just the day-to-day headline—it’s the pattern. A multi-day bid from institutions can reduce the likelihood that any bounce is purely retail-driven, though it doesn’t guarantee follow-through.

AI trade cools while crypto expects regulatory clarity

The crypto market rally referenced by Cointelegraph is linked to two overlapping themes: progress toward US crypto regulation and signs that the AI trade may be losing some of its momentum. The report ties the broader digital asset move to the cooling of the AI trade, with crypto-related equities joining the bid.

Cointelegraph notes that Coinbase, American Bitcoin and Cipher Digital posted double-digit percentage gains as sentiment improved. One cited catalyst was a statement from US Treasury Secretary Scott Bessent suggesting lawmakers were near the “1-yard line” on the CLARITY Act, a legislative effort intended to establish a regulatory framework for digital assets. While investor expectations don’t replace legislation, signals about legislative progress can still shift positioning—especially for firms that have spent long periods waiting for clearer rules.

On the AI side, analysts framed the change more as rotation than collapse. The source points to cooling enthusiasm in AI equities and growing confidence around the interest-rate outlook as supportive inputs for Bitcoin. A concrete proxy for this is the Philadelphia Semiconductor Index (SOX), which fell more than 20% from a recent high and recently slid into a technical bear market. Although SOX remains above year-ago levels, the magnitude of the pullback suggests that some speculative capital is less willing to pay whatever it takes for future AI monetization.

For crypto traders, that distinction matters: when AI-related liquidity tightens, some capital that was “parked” in semiconductors and high-multiple tech can become more willing to chase asymmetric upside elsewhere—provided the regulatory outlook and market structure remain supportive.

Miners ride AI data center and cloud contracts

Another strand of strength showed up in Bitcoin mining stocks, which surged on the back of major AI infrastructure deals highlighted by Cointelegraph: Hut 8 and IREN unveiled multibillion-dollar AI infrastructure agreements.

The source reports gains across Hut 8, IREN, Cipher Digital, CleanSpark and MARA Holdings after Hut 8 disclosed a 15-year, $9.8 billion lease for its AI data center campus. It also notes that IREN shared details of $2.8 billion in cloud services contracts with AI developers. The broader implication is that miners are continuing to diversify away from relying solely on Bitcoin production as mining economics become more challenging.

Alongside the deal headlines, the report emphasizes that the AI pivot is now large enough to shape how markets value parts of the mining sector. It states that IREN projects more than $4 billion in annual recurring AI cloud revenue by the end of 2026. That kind of forecast—especially when paired with long-term infrastructure arrangements—can attract investors who prefer visibility over purely cycle-driven earnings.

Still, the source also flags execution and funding risk. Blocksbridge Consulting, cited in the report, estimates the sector could require roughly $50 billion in additional capital to pursue its AI ambitions, while insider stock sales have drawn increased scrutiny. Taken together, the message is clear: investors may reward the pivot to AI-enabled infrastructure, but they are also watching for whether capital needs remain manageable and whether corporate actions align with long-term delivery.

Robinhood spotlight shifts to tokenization and prediction markets

Outside the immediate crypto market tape, Bernstein updated its view of Robinhood, arguing the brokerage’s next growth phase is likely tied more to tokenized products and prediction markets than traditional crypto trading. The report points to Bernstein raising its price target on Robinhood, lifting it to $160 from $130 while maintaining an Outperform rating.

Bernstein’s forecast in the source includes an expectation that prediction markets could become Robinhood’s fastest-growing segment, generating $1.7 billion in revenue by 2028. It also identifies tokenized equities as a major growth opportunity, citing Robinhood’s Arbitrum-based layer-2 network as infrastructure for bringing real-world assets on chain.

The thesis is reinforced by what the source describes as an acceleration of Wall Street’s tokenization push, naming companies such as Broadridge, Alpaca, Securitize and Cantor Fitzgerald as expanding blockchain-based securities infrastructure. For industry watchers, that matters because tokenization is a bridge concept: it can attract institutional interest by mapping blockchain capabilities onto familiar asset structures, potentially broadening demand for compliant onchain rails.

For readers, the next key question is whether the improving ETF inflow pattern persists while AI equities continue losing speculative steam. Watch for continued multi-day ETF demand, further signals on US regulatory progress around the CLARITY Act, and whether miner-led AI infrastructure narratives translate into measurable financial milestones rather than only headline-driven momentum.