Cryptocurrencies can be confusing. So can exchange-traded funds (ETFs). And when you combine the two concepts into crypto-based ETFs, there are so many dark corners and financial enigmas to explore.
The mystery includes some of the most commonly used terms in crypto ETF headlines. You’ve seen a million breathless banners about inflows and outflows by now — but have you looked into what they actually mean? Adding more confusion to the situation, the inflow and outflow balance sometimes looks bullish when the crypto market is doing well, and bearish when cryptocurrencies don’t look too exciting.
So let’s break down the nuances of crypto ETF inflows and outflows — and why these metrics often oppose the broader cryptocurrency market’s mood.