Semiconductor ETFs Outpace Crypto in 2026 Retail Flows

Retail investors have significantly favored semiconductor exchange-traded funds (ETFs) over crypto ETFs in 2026, with chip funds absorbing approximately $3.2 billion in net retail buying since January 2025, according to BeInCrypto. This trend is driven by a structural pivot towards artificial intelligence (AI) equities, as hyperscalers like Microsoft and Amazon project capital expenditures of $600 billion to $720 billion for AI infrastructure. In April 2026, the VanEck Semiconductor ETF (SMH) and iShares Semiconductor ETF (SOXX) saw record inflows of $5.5 billion, while crypto ETFs lagged behind.