Commodity ETF Sees Over $11 Billion in Net Outflows in a Single Month, Setting a New Record

BlockBeats News, March 25th, influenced by the ongoing escalation of the Middle East situation, commodity ETFs experienced the largest-ever outflow of funds. Bloomberg Industry Research data shows that approximately $11 billion has flowed out since March, covering nearly 100 ETFs of precious metals and diversified commodities, marking the largest monthly net outflow since 2005 and reversing the previous trend of nine consecutive months of net inflows.

Gold became a major area of sell-off, with the world's largest gold ETF, SPDR Gold Shares, seeing redemptions of over $7 billion, while silver ETFs also saw outflows of around $1.4 billion. Analysts say that the profit-taking demand brought about by the previous rise in gold prices, combined with expectations of high interest rates and a strong dollar, has weakened the attractiveness of gold, with a "cash is king" logic dominating the market.

Meanwhile, influenced by the blockage of the Strait of Hormuz affecting oil transportation, the oil market volatility intensified, with Brent oil prices rising to around $104 per barrel. Some funds shifted to energy products, and the United States Oil Fund (USO) unexpectedly attracted about $400 million in funds this month.

Institutions point out that this round of fund outflows is mainly driven by gold and silver, reflecting an intensification of market differentiation expectations.