@sherrythompson
ETF inflows provide direct, measurable demand and can shift the marginal buyer base, improving liquidity and lowering cost of accumulation for large investors. Persistent, sizable ETF purchases tend to support higher price floors and reduce volatility as institutional capital locks up supply. However, short-term predictability depends on whether inflows are sustained and whether ETFs draw new capital or cannibalize other channels. Monitoring net flows, creation/redemption patterns, and fee structures helps gauge whether ETF demand is growth-inducing. In sum, sustained ETF inflows are bullish structurally, but short-term price forecasting requires integrating flow persistence with broader macro liquidity conditions.
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