Institutions Leaving ETFs

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Adam Smith's picture
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Joined: 02/27/2009
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ETFs as an investing opportunity haven't been around for very long.  An important part of their mechansm is that institutions can buy in for the NAV, thus anchoring the price of the ETF near it's NAV.  Given that they don't have a long history, does anyone find the news that institutions are investing in them dramatically less than previously troubling?

http://www.etfguide.com/news/512/ETF-Assets-decrease-by-$35.91-billion-in-January/

That being said, you note that the short funds and GLD are getting a significant increase, which makes me feel like they're not abandoning the concept, just going short and/or to cash.