Leveraged ETF Assets Drop 28% to $154B as Retail Speculation Cools

Castle Securities notes leveraged ETF assets fell 28% to $154B. Market shifts from fund flows to earnings and buybacks, with reduced pressure on trading desks.

Woofun AI reports that Castle Securities maintains the drivers behind U.S. stock record highs remain intact following a cooling in retail speculative activity. Scott Rubner, head of equity and equity derivatives strategy, states the market is transitioning from a fund flow-driven regime to one anchored by earnings, corporate demand, and macroeconomic factors.

The withdrawal of retail investors has caused leveraged ETF assets to decline 28% to $154 billion. Lower financing costs for stock positions have alleviated pressure on Wall Street trading departments, while robust earnings and anticipated acceleration in corporate buybacks support the outlook.