BlockBeats News, March 25 — Due to the ongoing escalation of the Middle East situation, commodity ETFs experienced the largest fund outflow in history. Bloomberg Industry Research data shows that since March, approximately $11 billion has flowed out of nearly 100 ETFs covering precious metals and comprehensive commodities, marking the largest single-month net outflow since 2005 and reversing a nine-month consecutive net inflow trend.
Gold has become the hardest hit, with the world’s largest gold ETF, SPDR Gold Shares, experiencing redemptions of over $7 billion. Silver ETFs also saw outflows of about $1.4 billion. Analysts say that recent gold price increases have led to profit-taking, combined with expectations of high interest rates and a strong dollar, which weaken gold’s appeal. The market is currently dominated by the “cash is king” mentality.
Meanwhile, due to disruptions in shipping through the Strait of Hormuz, oil market volatility has increased. Brent crude oil prices rose to about $104 per barrel, with some funds shifting into energy products. The US Oil Fund (USO) has attracted approximately $400 million in inflows this month against the trend.
Institutions point out that the current round of fund outflows is mainly driven by gold and silver, reflecting growing divergence in market expectations.
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