Bitcoin ETF Flows Track Past Prices, Not Future Returns, DWF Study Finds
- —Flows show 0.54 correlation with the prior five-day BTC return
- —Correlation with the next five-day return is just 0.03
- —Sample covers 694 trading days using Farside and Coinbase data
- —An ETF purchase can be paired with a CME futures short as a basis hedge
Why it matters: A big daily ETF inflow reflects past price action rather than predicting the next move, changing how traders read flow data.
Source: NewsBTC