Spot crypto ETF flows turn positive after a six-week drought
Authorised participants created shares across four of the largest US spot funds this week, ending the longest run of net redemptions since launch.
US spot digital-asset exchange-traded funds recorded net creations for a fifth consecutive session on Friday, according to issuer disclosures reviewed by DC10AUDIO, breaking a six-week stretch in which redemptions outpaced subscriptions.
The turn was concentrated in the four largest funds by assets. Desk analysts attribute much of the shift to basis traders re-entering the cash-and-carry trade as futures curves steepened, rather than to a wave of new long-only allocation.
"The flow print is real, but the composition matters," said one market maker who requested anonymity because they are not authorised to speak publicly. "A carry-driven creation is a rented bid. It leaves when the basis compresses."
Secondary-market volumes tell a similar story. Average daily turnover in the complex rose roughly a fifth week-over-week, while bid-ask spreads on the two most liquid funds narrowed to their tightest levels of the quarter — a pattern consistent with professional rather than retail participation.
Advisers remain the swing factor. Several large wirehouses only cleared the products for solicited recommendations this year, and allocation committees typically move on quarterly, not weekly, cycles.
DC10AUDIO will update this story as issuers publish end-of-week holdings.
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