Recently, some people have been using the supply curve of stablecoins to draw lines against ETF inflows, basically looking at both lines rising together as "foreign money coming in." I find this approach a bit unconvincing; the correlation can easily be disguised as causation: an increase in stablecoins could also be due to arbitrage traders, market makers preparing reserves, or even just on-chain transfers, not necessarily that new money is coming from outside the market.

Moreover, after everyone has experienced cross-chain bridge hacks and the entire network waiting for confirmations when oracles go haywire, funds are actually more cautious now. People prefer to wait a couple of rounds rather than rush in first. I also see ETFs as just a channel, but opening a channel doesn’t mean the water will keep flowing; it’s more about who is allocating within it and who can get certainty first. Anyway, I don’t take charts as definitive answers.