Weekly Market Monitor – Week Ending 13 January 2023

  • Crypto ETFs (EBTC, EETH, CRYP, FTEC) found some much-needed relief last week as Bitcoin and Ethereum surged over 10%. Crypto was hammered in 2022 by Federal Reserve rate hikes, which caused highly leveraged and pockets of the crypto ecosystem to collapse. But investor bullishness has returned since recent inflation prints eased, suggesting the Fed may take a dovish turn.
  • Short leveraged funds (SNAS, BBOZ, BBUS, BEAR), which bet against global share markets, were the poorest performers as the global stock market rose. Platinum and palladium ETPs (ETPMPT, ETPMPD) underperformed as investors remained concerned that a global recession could blunt demand for automobiles. The primary uses for platinum and palladium are in the production of catalysts in cars.
  • There were $261.5 million in reported inflows last week, with ASX tracking ETFs (IOZ, STW) and short US equity funds (SNAS, BBUS, BBOZ) receiving the majority of inflows. These flows suggest that while Aussies remain bullish on domestic equities, investors are prepared for volatility in the US as the earnings season and Fed rate decision are just around the corner.
  • There were $87.72 million in reported outflows, making yet another week of positive net flows for the industry.
  • The top traded funds for the week featured large index trackers (VAS, IOZ, VGS) as usual. Alongside the mainstays, short and leveraged funds (BBOZ, BBUS, SNAS, LNAS) also found themselves in the mix once again as investors geared up for volatility ahead.

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