Traders adopt diametrically opposite stock fund strategies (ETF) in order to navigate one of the most unpredictable financial markets in recent history, according to Bloomberg Intelligence data.
The year at the beginning of the year has experienced record entries to ETFs offering long-term exposure to volatile assets such as actions and cryptocurrencies, as well as funds with risk assets such as species and gold, according to data.
“”[T]Here are mainly recording flows in long and leverage effects, but also FNB in cash and gold while people buy the dive and cover the dive at the same time. May the best Degen Win! “Said analyst Bloomberg Intelligence Eric Balchunas in an April 23 article on the X platform.
The leverage FNB are funds that aim to multiply the daily performance of assets such as actions or the crypto, often by two or three times.
In 2025, long -speaking FNBs attracted net entries of around $ 6 billion, according to Bloomberg Intelligence. Meanwhile, cash and gold inputs approached around $ 4 billion.
Digital gold?
Record Fund flows occur in the middle of a peak in market turbulence after US President Donald Trump announced plans to sweep the prices on American imports on April 2.
Since then, the S&P 500, an index of large American actions, has lost around 5% of its value, according to Google Finance data. Bitcoin (BTC) was relatively resilient.
On April 22, the punctual price of the cryptocurrency recovered $ 90,000 per room for the first time in six weeks, the Bitcoin ETF blocking nearly a billion dollars in net admissions. The cryptocurrency is negotiated above $ 93,000 in April 23, according to Google Finance data.
“Even in the wake of recent price announcements, the BTC has shown certain signs of resilience, holding stable or bouncing on days when traditional risk assets have weakened,” said Binance, the largest cryptocurrency exchange in the world, in a research report in April.
Bitcoin has often been called “digital gold”, but cryptocurrency always has a low correlation with the Safe Haven assets and is negotiated more in accordance with the actions, said Binance. Its correlation with gold was on average about 0.12 in the last 90 days, against 0.32 for actions.
“The key question is whether the BTC can go back to its long-term model of short correlation with actions,” noted the report, adding that gold is always a favorite safe for most investors.
Meanwhile, cryptocurrency exchanges benefit from the increase in volatility to double financial derivatives, such as future.
In April, net open interest in Bitcoin’s term contracts increased by 30%, to around $ 28 billion, according to Coanyze data.
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