Is an increase in stablecoin supply equivalent to ETF funds really flowing in?

I think we shouldn't rush to draw that conclusion; what we see on-chain is just "more water," not necessarily "new water" coming in.
It could also be old money swapping buckets, market making moving funds around, or even cross-chain shuffling to inflate the numbers.
Recently, with AI Agents and automated trading, this trend is even more obvious.
Once scripts are active, the frequency of minting/redeeming/arbitrage increases, gas fees and packing pace change instantly, making it look like funds are surging.
In reality, many of these are just machines optimizing efficiency and creating noise for you.
Honestly, I now prefer to focus on transaction structures and redemption activity rather than just being impressed by the supply curve…
As for safety, the same old advice: the more automated the interaction, the easier it is for people to treat authorization as air.