Silver Rout Was Worsened by ‘Destabilizing’ Leveraged ETF Spree, BIS Says

The worst silver sell-off on record at the end of January was accelerated by growing retail participation in leveraged exchange-traded funds, according to the Bank for International Settlements. BIS says retail inflows into leveraged silver ETFs amplified volatility and exacerbated the price decline, indicating heightened tail-risk in the commodity's futures/ETF complex.

Analysis

The worst silver sell-off on record at the end of January was accelerated by growing retail participation in leveraged exchange-traded funds, according to the Bank for International Settlements. BIS says retail inflows into leveraged silver ETFs amplified volatility and exacerbated the price decline, indicating heightened tail-risk in the commodity's futures/ETF complex.