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The Pulse: Crypto Risk Review
Over the last month, the October liquidation shock has matured into a broader risk-off move. Spot BTC ETFs that were major inflow channels earlier in the year have flipped into persistent net outflows, with redemptions forcing issuers to sell underlying BTC into already thin order books. Instead of dampening volatility, ETF redemptions are now acting as a mechanical accelerator for the sell-off, pushing prices through successive support levels and triggering collateral stress across the rest of the stack. For risk teams, ETF flows have effectively become a macro lever on on-chain leverage: a bad ETF flow day upstream ... (full story)