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Tech ETFs saw volatility. One report noted a $6 billion weekly inflow (a bounce after prior outflows), but followed by an ~$898 million reversal/outflow, showing rotation pressure and sector volatility.
In the week ended February 4, 2026, investors withdrew a sharp $2.34 billion from the $BTC technology sector (per LSEG Lipper data via Reuters). This aligned with a broader US equity fund inflow slowdown ($5.58 billion total US equity inflows, down 48% week-over-week) amid software stock selloffs and AI disruption concerns.
US equity funds overall eased inflows due to tech caution. Large-cap funds had modest inflows, but sector-specific tech faced pressure. Global ex-US funds saw stronger inflows as investors rotated away from richly valued US tech.$BNB
Tech sector ETFs had mixed but often positive annual flows in 2025 (e.g., leading some sector inflows), but early 2026 shows rotation out of tech toward cyclicals, internationals, or other areas amid Big Tech/AI spending scrutiny and market shifts.
