BTC Risk Index shows negative correlation with ETF fund flows, analysis finds

Cryptocurrency data analytics firm Swissblock has found a negative correlation between its Bitcoin Risk Index and fund flows for spot Bitcoin ETFs. In an analysis shared via its Bitcoin Vector signal service, Swissblock explained that when funds flow out of ETFs, the Risk Index becomes unstable and selling pressure tends to dominate. Conversely, when there are net inflows into ETFs, the Risk Index falls. The firm noted this phenomenon has been occurring almost in lockstep since last November and became particularly prominent last week. Swissblock added that if ETF-driven inflows continue, the Risk Index could fall to 25 or below, leading to a market where buying pressure takes control.