Traders are pouring out of the leveraged ETFs, gold in the volatility of weather – Bloomberg
Entrepreneurs have embraced diametrically opposed techniques exchanged funding (ETF) in a bid to navigate one of the unpredictable financial markets in recent history, according to data from Bloomberg Intelligence.
The year-to-date has seen record flow to ETFs that provide prolonged exposure to volatile properties such as stocks and cryptocurrencies, as well as funds holding assets at risk such as cash and gold, data is displayed.
“(T) Here are the record flows that flow to long ETFs but also cash and gold ETFs as people buy sinking and avoiding sinking at the same time. It may be the best degen win!,” Bloomberg Intelligence analyst Eric Balchunas Says In a post of April 23 on the Platform of X.
Leveraged ETFs are funds aimed at increasing the sun -performance of properties such as stocks or cryptos, often by two or three times.
In 2025, leveraged long ETFs attracted the net ranging of nearly $ 6 billion, according to Bloomberg Intelligence. Meanwhile, the flow of cash and gold funds approached nearly $ 4 billion.
Digital Gold?
The Record Fund flow arrived in the middle of a spike in the market riot after US President Donald Trump announced plans for sweeping tariffs on US imports on April 2.
Since then, the S&P 500, a US large stock index, has dropped almost 5% of its value, according to data from Google Finance. Bitcoin (Btc), Meanwhile, it became Pretty resilient.
On April 22, the price of cryptocurrency area was reclaimed $ 90,000 per coin in the first time in six weeks, including bitcoin ETF Clocking nearly $ 1 billion in net inflows. Cryptocurrency is trading above $ 93,000 to April 23, according to data from Google Finance.
“Even in recent tariff announcements, the BTC has shown some signs of stability, holding or bouncing in the days when traditional risk ownership,” Binance, the world’s largest cryptocurrency exchange, stated in an April research report.
Bitcoin is often referred to as “digital gold” but cryptocurrency still has a weak relationship with the safe ownership of haven and more consistent with equality, Binance said. Its touch with gold has an average of around 0.12 in the past 90 days, compared to 0.32 for equality.
“The main question is whether the BTC can return to the long-term low touch pattern with equality,” the report said, adding that gold is a preferred safe property for most investors.
Meanwhile, cryptocurrency exchanges maximize the increase in volatility of Duplication of financial derivativesLike futures.
In April, the net open interest in Bitcoin futures increased up to 30%, to approximately $ 28 billion, according to Data from coinalyze.
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