According to ChainCatcher, Eric Balchunas, a senior ETF analyst at Bloomberg, wrote on the X platform that the United States Oil Fund (USOF) saw unusually active trading today, with a single-day turnover exceeding $7.6 billion as of 11:30 a.m. Eastern Time, breaking its historical single-day turnover record and far exceeding the trading volume levels during the periods of sharp oil market fluctuations in 2020 and 2022.
Analysts believe that the surge in trading volume may have come from both professional traders and retail investors with a high risk appetite. USO is considered one of the most sensitive equity assets to oil prices, and therefore often attracts a large number of short-term trades during periods of sharp oil price fluctuations.
Eric Balchunas cautioned that since USO primarily tracks oil prices by rolling over crude oil futures contracts, long-term holdings may be eroded by futures rollover costs. Additionally, oil prices are subject to rapid pullbacks, and investors should be aware of potential volatility.
