The recent rebalancing operation has caused passive funds to sell nearly a quarter of the open interest in silver futures. The underlying logic is quite straightforward—silver has been rising rapidly, and its financial attributes are strong. As a result, passive funds' weight in commodity indices has increased accordingly, making rebalancing automatically a "must reduce positions" action. In simple terms, passive funds do not make active choices; once system rules trigger, they must sell. This mechanical outflow of funds exerts significant pressure on silver prices.