IGV surges 40% from April lows while bitcoin lags, marking its first negative 20-day correlation with the cryptocurrency since May 2024.
The iShares Expanded Tech-Software Sector ETF (IGV) has climbed to a one-year high against bitcoin, trading at 0.0016, as the two assets decouple. IGV is down just 1% year-to-date, while bitcoin has fallen 29% in 2026, reversing a long-standing correlation.
Historically, bitcoin has rebounded to close performance gaps during similar divergences, such as in 2018, 2020, and 2021. However, IGV’s 40% rally from its April low suggests software stocks may be breaking away, driven by easing fears of an AI-driven “SaaS apocalypse.”
The ETF is now 13% below its all-time high, while bitcoin remains 50% off its peak. The 20-day rolling correlation between IGV and bitcoin turned negative for the first time since May 2024, signaling a potential shift in market dynamics.