Ouroboros Flows & Positioning Chartbook #9
TradFi is bidding. Idiosyncratic risk-on liquidity coming into crypto. ETH ETF to follow BTC's fractal. // We released this article one week prior, exclusive to Ouroboros Lifetime Access Pass holders.
Welcome to the weekly Ouroboros Flows and Positioning Chartbook, a weekly compendium dedicated to providing a balanced view of the most noteworthy Flows and Positioning charts. None of the following is financial advice.
Its interesting how much has changed in 2 weeks since our last chartbook. The narrative has flipped from FUD post BTC's ETF listing (largely from Grayscale's sell flow) to full on "we are so back". BTC price making a new high post its ETF listing tells us that the market is past the concerns of Grayscale redemptions; post seeing evidence of BTC ETF net flows achieving strong positive momentum.
That said, we are largely unbothered by the short term price action as we've been net long. We've previously highlighted how this year is the year to be long with i) looser monetary policy in addition to ii) the onboarding of incrementally more market participants (largely TradFi) via both the BTC and ETH ETF listings.
I wouldn't advocate taking profits on your alt coins too early here as BTC dominance (BTC.D) is creeping up to test its highs. Historically, new highs in BTC.D tends to herald mini alt seasons.
Its also nice to see our ETH ETF bets paying off. We continue to hold the view that ETH's ETF listing will follow a similar fractal to BTC's and like to be in ETH beta with identifiable upside catalysts - eg. Dencun upgrade, more staking of ETH post ETH's ETF, zk L2s, Fraxchain etc. Names we continue to like are ARB, OP, FXS, BLUR and MATIC.
In terms of the highlights from our chartbook, it is apparent to us that TradFi in addition to a front-running of the ETH ETF listing. We are seeing a surge in CME OI as well as spot outflows from exchanges, not too dissimilar from how it played out with the BTC ETF. At the same time, there is evidence of idiosyncratic risk-on liquidity coming into crypto. We observe that stablecoin market cap continues to climb up aggressively while stablecoin dominance stayed low.
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F65d2dbe9-621a-4fd6-9431-eeafb5a95072_790x540.png)
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4ff19a67-adba-435e-91e3-daed4733eab6_750x555.png)
![](https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F168488e8-4d73-4826-827e-2b674827f20a_1071x418.png)