{"id":127824,"date":"2025-04-23T23:16:45","date_gmt":"2025-04-23T23:16:45","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127824"},"modified":"2025-04-23T23:16:45","modified_gmt":"2025-04-23T23:16:45","slug":"traders-pour-into-leveraged-etfs-gold-in-bid-to-weather-volatility-bloomberg","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127824","title":{"rendered":"Traders pour into leveraged ETFs, gold in bid to weather volatility \u2014 Bloomberg"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsTraders are embracing diametrically opposed exchange-traded fund (ETF) strategies in a bid to navigate one of the most unpredictable financial markets in recent history, according to data from Bloomberg Intelligence.\u00a0<br \/>\nThe year-to-date has seen record inflows to ETFs providing leveraged long exposure to volatile assets such as stocks and cryptocurrencies, as well as funds holding risk-off assets such as cash and gold, the data shows.\u00a0<br \/>\n\u201c[T]here&#8217;s basically record flows going into leveraged long ETFs but also cash and gold ETFs as people buy the dip and hedge the dip at the same time. May the best degen win!,\u201d Bloomberg Intelligence analyst Eric Balchunas said in an April 23 post on the X platform.<br \/>\nLeveraged ETFs are funds that aim to multiply the daily performance of assets like stocks or crypto, often by two or three times.<br \/>\nIn 2025, leveraged long ETFs attracted net inflows of roughly $6 billion, according to Bloomberg Intelligence. Meanwhile, inflows into cash and gold funds approached roughly $4 billion.\u00a0<br \/>\nNet inflows into leveraged long ETFs and cash and fold ETFs. Source: Bloomberg IntelligenceDigital gold?<br \/>\nThe record fund flows come amid a spike in market turbulence after US President Donald Trump announced plans for sweeping tariffs on US imports on April 2.<br \/>\nSince then, the S&amp;P 500, an index of large US stocks, has shed roughly 5% of its value, according to data from Google Finance.\u00a0Bitcoin (BTC), meanwhile, has been comparatively resilient.\u00a0<br \/>\nOn April 22, the cryptocurrency\u2019s spot price reclaimed $90,000 per coin for the first time in six weeks, with Bitcoin ETFs clocking nearly $1 billion in net inflows.\u00a0The cryptocurrency trades above $93,000 as of April 23, according to data from Google Finance.<br \/>\n\u201cEven in the wake of recent tariff announcements, BTC has shown some signs of resilience, holding steady or rebounding on days when traditional risk assets faltered,\u201d Binance, the world\u2019s largest cryptocurrency exchange, said in an April research report.\u00a0\u00a0<br \/>\nBitcoin has often been referred to as \u201cdigital gold\u201d but the cryptocurrency still has a weak correlation to the safe haven asset and trades more in line with equities, Binance said. Its correlation with gold has averaged around 0.12 over the past 90 days, versus 0.32 for equities. \u00a0<br \/>\n\u201cThe key question is whether BTC can return to its long-term pattern of low correlation with equities,\u201d noted the report, adding that gold is still a preferred safe-haven asset for most investors.<br \/>\nMeanwhile, cryptocurrency exchanges are profiting off of rising volatility by doubling down on financial derivatives, such as futures.\u00a0<br \/>\nIn April, net open interest in Bitcoin futures increased by upward of 30%, to approximately $28 billion, according to data from Coinalyze.\u00a0<br \/>\nMagazine:\u00a0What are native rollups? Full guide to Ethereum\u2019s latest innovation<a href=\"https:\/\/cointelegraph.com\/news\/traders-into-leveraged-etfs-gold-volatility-bloomberg?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsTraders are embracing diametrically opposed exchange-traded fund (ETF) strategies in a bid to navigate one of the most unpredictable financial markets in recent history, according to data from&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127824"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127824"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127824\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127824"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}