2026-01-20 07:20:24

Think about what markets are supposed to do—funnel capital to where it actually generates returns. But passive funds? They don't care about that game. They just buy everything mechanically, regardless of whether valuations make sense.

This indiscriminate buying spree can seriously warp prices away from the underlying fundamentals. You end up with assets pumped up not because they're worth more, but simply because passive inflows keep chasing them. In crypto markets, we've seen this play out countless times—tokens rallying on momentum while actual utility metrics stay flat.

The problem is real: when trillions flow into index-tracking strategies, they stop performing their proper function as a price discovery mechanism. Markets become less efficient, not more.

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SolidityStruggler

· 12h ago

Passive funds are really just walking corpses, buying everything without even looking... Nah, really, our crypto market has been messed up by these bots, and junk coins are being pushed to the sky. The price discovery mechanism has been broken long ago; now it's just a game of piling up capital. Honestly, the index tracking approach should have been re-evaluated long ago; now market efficiency is even worse... That's why every time large funds enter, absurd bubbles appear, and no one cares about the fundamentals. Wait, does that mean retail investors are actually just following the trend and taking the hit? Passive funds treat the market like a slot machine, pulling the lever and buying...

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SlowLearnerWang

· 12h ago

Here we go again, this set of passive funds... I've seen through it long ago, it's just mechanical blind buying, completely ignoring the fundamentals. Do you understand now? We've already been cut by this thing several times, haha.

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DAOdreamer

· 12h ago

Passive funds have really messed up market price discovery, I've been saying that all along. It's just pure capital stacking, has nothing to do with fundamentals, looks uncomfortable. Alright, time to grit my teeth and watch another round of irrational rise. To put it simply, index tracking is a lazy solution, but the cost is really high. With this wave of liquidity pouring in, the prices are completely artificial, it's pointless.

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gas_fee_therapist

· 12h ago

Passive funds are just a big joke. You can buy anything as long as it's in the index. In the end, those of us who truly focus on fundamentals end up at a disadvantage. --- I totally agree. Momentum trading has killed price discovery. Now, it's all about how much capital you have. --- It's the same old story. The problem is, if you don't have much money, there's no way to fight against this tide of passive funds. --- Billions of yuan have flowed in, and the market still calls it efficient? Laughable. This is just a new game for big players. --- The most ironic thing in the crypto world is that those who promote decentralization end up being harvested by index funds. --- So, either follow the trend and speculate, or just hold long-term honestly. Trying to beat the capital scale with fundamentals? That's a pipe dream. --- That's why I now focus on technical analysis. Fundamentals are just a joke in front of passive capital.

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MevWhisperer

· 13h ago

Yeah, passive funds are really disappointing. It's just throwing money into an index without any management. Honestly, right now, whoever has more money gets to decide everything. Price discovery is a joke.

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