Traders are utilizing contrasting ETF strategies to navigate recent financial market volatility, marked by record inflows to both leveraged long ETFs and conservative funds holding cash and gold. According to Bloomberg Intelligence, leveraged long ETFs, designed to amplify daily asset performance, attracted approximately $6 billion in 2025, while cash and gold funds saw inflows nearing $4 billion. These fund flows surged following US President Donald Trump's announcement of new tariffs on imports, leading to a 5% decline in the S&P 500. Despite market turbulence, Bitcoin demonstrated resilience, reclaiming a price above $90,000 on April 22, with the cryptocurrency closely correlated to equities over recent months but still viewed by some as 'digital gold.' Amid increasing volatility, Bitcoin futures saw net open interest rise over 30%, reaching approximately $28 billion. The evolving dynamic raises questions about Bitcoin's long-term correlation with traditional risk assets and suggests that gold remains the preferred safe haven for many investors.

Source 🔗