2026 is starting with a risk-on signal. On the first trading day of the year, $ETH ETFs pulled in $174M — their best day since early December — after suffering $2B in total outflows from November through December. $BTC ETFs followed with $471M, the strongest inflow since November, after $4.6B of outflows over the same period.
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As onchain banks surge past $70B in deposits and $27B in active loans, one of the more under-appreciated dynamics is what’s happening beneath the surface with repayments and liquidations, especially the scale of forced deleveraging. November just posted the highest liquidation volume ever, with more than $422M in positions forcibly unwound. Combined with October, that brings two-month forced deleveraging to a staggering $727M. Importantly, this occurred without contagion or protocol instability and instead was a meaningful validation of onchain risk frameworks
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Happy RISK-OFF December, everyone!
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