Traders pour into leveraged ETFs, gold in bid to weather volatility — Bloomberg
Traders are utilizing contrasting ETF strategies to navigate a volatile financial market, with record inflows into both leveraged long ETFs and risk-off assets like cash and gold. In 2025, leveraged long ETFs attracted approximately $6 billion, while cash and gold funds saw inflows of about $4 billion. Market turbulence increased following US tariff announcements, leading to a 5% decline in the S&P 500. Bitcoin's price rebounded to over $90,000, with nearly $1 billion in net inflows for Bitcoin ETFs. Despite being labeled "digital gold," Bitcoin has a low correlation with gold and aligns more closely with equities. Cryptocurrency exchanges are capitalizing on volatility, with Bitcoin futures' net open interest rising over 30% to around $28 billion.
