Retail traders are fueling the growth of leveraged ETFs, with assets reaching a new record of $100 billion. Despite market risks related to AI and cryptocurrencies, traders continue to invest in leveraged funds to profit from stocks such as Microsoft, Tesla, and semiconductor companies. Long equity leveraged ETFs currently hold about $95 billion, outpacing bearish counterparts with $9 billion. Retail participation in cryptocurrency-linked ETFs has also rebounded, with the 2X Ether ETF experiencing strong inflows after a drop in Ether's price. There are concerns about the sustainability of leveraged ETFs and the potential for individuals to misuse them and incur significant losses. However, the dominance of long-leveraged ETFs suggests retail traders remain optimistic about the market, particularly in the technology sector.



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