Leveraged ETFs suffer record 25.7 billion USD meltdown as retail traders take major hit

Leveraged ETFs experienced a staggering loss of 25.7 billion USD within two trading sessions, marking the largest outflow on record. This decline stemmed from new tariffs implemented during Trump’s administration, significantly impacting both traditional and crypto markets.

Retail traders faced serious financial repercussions as high-risk funds related to technology and semiconductor stocks plummeted by over 50%. Notably, the Leverage Shares 4x Long Semiconductors ETP suffered a loss exceeding 59%.

Despite the downturn, Bitcoin (BTC) is expected to rebound as investors shift towards safer assets in light of increasing global uncertainties. Analysts believe that Bitcoin may benefit from ongoing economic tensions as a non-sovereign store of value.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

More posts