The shockwaves from FTX’s quick collapse into bankruptcy last week are raising urgent questions on the risks to financial markets beyond the troubled cryptocurrency exchange’s balance sheet. At least so far, analysts don’t believe the fallout has upended retail investors on the whole. “We are not seeing any spill-over effects from the crypto meltdown yet,” said analysts at Vanda Research, a firm analyzing the moves and trends of everyday traders and investors, on Wednesday.
After FTX and its related entities filed for Chapter 11 bankruptcy on Friday, Vanda Research analysts looked at retail investor buying trends this week for “traditional assets” like U.S.-listed stocks and ETFs. “There’s been no significant impact on retail’s bid for traditional assets as daily purchases has reverted to the [year-to-date] average so far this week,” they wrote in a note. Daily retail investor inflows to U.S. stocks and ETFs have averaged $1.23 billion, according to Vanda. In recent days, companies and ETFs giving investors indirect crypto exposure are getting less than 1% — 0.3% — of the retail investor money flowing into stock markets, the research firm said. Year to date, the daily inflows to these companies and ETFs have constituted an average 1.2% of the daily inflows. In the past five trading days, the Dow Jones Industrial Average
is up more than 3%, while the S&P 500
is up nearly 6% and the Nasdaq …