Retail Investors Pull Seven Billion Dollars from Leveraged ETFs After Strong September Rally
The post Retail Investors Pull Seven Billion Dollars from Leveraged ETFs After Strong September Rally appeared on BitcoinEthereumNews.com. Retail investors pull $7B from leveraged ETFs in September 2025 after strong gains, with SOXL and TSLL leading withdrawals. Retail traders are withdrawing money from high-risk leveraged exchange-traded funds (ETFs) after a strong rally in September. Data shows net outflows of around $7 billion this month, marking the largest withdrawal since records began in 2019. Leveraged ETFs Face Largest Outflow in Years According to The Kobeissi Letter, leveraged ETFs saw $7 billion in outflows month-to-date, with the semiconductor-focused SOXL leading the withdrawals. SOXL, which tracks semiconductor stocks at three times leverage, lost about $2.4 billion despite gaining 31% in September. This marks the fund’s fifth straight month of outflows and the second-largest exit in four years. Source: The Kobeissi Letter/X Other leveraged ETFs also experienced large withdrawals. TSLL, a leveraged ETF tied to Tesla stock, recorded $1.5 billion in monthly outflows, its largest on record. These exits suggest that traders are taking profits even though the broader market remains near record highs. Bloomberg Intelligence noted that these outflows are the biggest since leveraged ETF data began in 2019. This trend reflects a shift among day traders who had fueled rallies earlier this year. Instead of adding new money, they are reducing exposure to riskier positions while stock indexes remain strong. Market Strength Meets Rising Caution The S&P 500 slipped 0.3% for the week, its first decline in a month, while the Nasdaq 100 fell 0.5%. Treasury bonds also extended losses, with the iShares 20+ Year Treasury Bond ETF dropping for a second week. While these moves were modest, they show that markets are entering a more cautious phase. Cryptocurrency markets added pressure, losing about $300 billion in value earlier in the week. Leveraged positions in Bitcoin and Ether were forced to unwind, causing sharp price swings before partial recovery by…
The post Retail Investors Pull Seven Billion Dollars from Leveraged ETFs After Strong September Rally appeared on BitcoinEthereumNews.com.
Retail investors pull $7B from leveraged ETFs in September 2025 after strong gains, with SOXL and TSLL leading withdrawals. Retail traders are withdrawing money from high-risk leveraged exchange-traded funds (ETFs) after a strong rally in September. Data shows net outflows of around $7 billion this month, marking the largest withdrawal since records began in 2019. Leveraged ETFs Face Largest Outflow in Years According to The Kobeissi Letter, leveraged ETFs saw $7 billion in outflows month-to-date, with the semiconductor-focused SOXL leading the withdrawals. SOXL, which tracks semiconductor stocks at three times leverage, lost about $2.4 billion despite gaining 31% in September. This marks the fund’s fifth straight month of outflows and the second-largest exit in four years. Source: The Kobeissi Letter/X Other leveraged ETFs also experienced large withdrawals. TSLL, a leveraged ETF tied to Tesla stock, recorded $1.5 billion in monthly outflows, its largest on record. These exits suggest that traders are taking profits even though the broader market remains near record highs. Bloomberg Intelligence noted that these outflows are the biggest since leveraged ETF data began in 2019. This trend reflects a shift among day traders who had fueled rallies earlier this year. Instead of adding new money, they are reducing exposure to riskier positions while stock indexes remain strong. Market Strength Meets Rising Caution The S&P 500 slipped 0.3% for the week, its first decline in a month, while the Nasdaq 100 fell 0.5%. Treasury bonds also extended losses, with the iShares 20+ Year Treasury Bond ETF dropping for a second week. While these moves were modest, they show that markets are entering a more cautious phase. Cryptocurrency markets added pressure, losing about $300 billion in value earlier in the week. Leveraged positions in Bitcoin and Ether were forced to unwind, causing sharp price swings before partial recovery by…
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