2025-12-22 12:24:48

Global ESG fund inflows hit their peak back in 2021—a whopping $645 billion flooded in. But the narrative flipped completely. Fast forward to 2025: we're seeing a record exodus of $11.8 billion pulling out of ESG funds. What shifted? The hype around ESG that was everywhere a few years ago? It's fading. Market sentiment turned, institutions are reconsidering, and capital is moving elsewhere. This broader reallocation across traditional markets actually mirrors what we see happening in crypto—investors are rotating strategies, chasing returns over labels.

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LiquidatorFlash

· 21h ago

64.5 billion to negative 11.8 billion... this reversal is a bit harsh. To put it bluntly, it's the yield that matters, how much is the ESG label worth? --- It's another rotation... it feels like the whole market is trying to avoid a certain liquidation risk threshold, this logic applies from TradFi to encryption. --- That wave of ESG hype in 2021 was just a game of capital sentiment, now that sentiment has changed, leverage has started to reduce position. --- 11.8 billion dollars withdrawn... we need to see if there's some risk control mechanism that has been triggered behind this, such a large outflow usually doesn't happen without reason. --- Chasing yield vs label, to put it nicely it's a rational return, to put it harshly, ESG has never been that important. --- It's interesting... institutions are reconfiguring, I'm just curious where that money will eventually flow to? I have a vague feeling it's like avoiding something. --- The decline of ESG = TradFi also starts to compete for yield, this thinking is the same as in the crypto world.

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NightAirdropper

· 12-23 09:31

The ESG drama is truly remarkable, with 64.5 billion coming in and 11.8 billion going out; capital is the most honest ballot. To be honest, this wave of being played for suckers has been somewhat gratifying to watch; the label economy is ultimately just a bubble. I mean, chasing returns is the way to go; those investment theories that moralistically bind you don't hold water. The same logic applies to the shift to encryption; instead of talking about ESG, it's better to look directly at the return rates; reality is just that harsh. This wave of mass withdrawal has long been visible; anyone with eyes can see that ESG is an overhyped concept.

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BanklessAtHeart

· 12-22 12:54

The ESG narrative is about to collapse, it's really the outcome of chasing the trend. To put it simply, this round of operations by institutions is just swapping horses; everyone wants real money, not those empty labels.

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PortfolioAlert

· 12-22 12:53

Haha, ESG really pumped this time, going from 64.5 billion to withdrawing 11.8 billion, what a contrast. Still the same saying, chasing hot trends is not as good as chasing profits. --- Labels will never beat real money, this round is turning really fast. --- I mean, last year they were still hyping the ESG environmental concept, and this year they started to Rug Pull. Capital is actually the most honest. --- Isn't this the essence of capital? Changing names but still playing people for suckers, it's just that this time too many people got trapped. --- From ESG to encryption and then to whatever else, to put it bluntly, it's all about rotation, investors are getting smarter and are no longer falling for the label trick. --- 64.5 billion turned around and ran, institutions really know how to ride the wind. --- Wait, can this logic apply to the crypto world? What are we going to rotate to next? --- A typical follow the herd effect, when the wind comes, everyone rushes in, when the wind is gone, everyone scatters. --- It seems to make money, you have to follow the institutions, don't be blinded by the stories. --- I was thinking, where did that 11.8 billion go? There must be someone catching a falling knife at the low.

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MetaReckt

· 12-22 12:44

The ESG narrative has collapsed, and now everyone is looking at returns. Just like in our crypto world, concept hype ultimately can't compete with real money, and those who should run have still run.

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