Are record investments in traditional and crypto ETFs weakening the Federal Reserve’s influence?

U.S.-listed ETFs have achieved unprecedented growth, now managing $12.19 trillion. August alone saw inflows total $120.65 billion, pushing year-to-date contributions to $799 billion, highlighting a dramatic shift in investment patterns.

The rise of ETFs, including crypto-linked ones now overseeing over $120 billion, may challenge the Federal Reserve’s traditional market influence. As automatic investing gains traction, it raises concerns regarding market responsiveness to central bank policy.