The asset size of leveraged semiconductor ETFs has shrunk by 39% from its June peak, marking the largest decline since April 2025.
BlockBeats News, July 20, according to data from Kobeissi Letter, the assets under management (AUM) of leveraged semiconductor ETFs have dropped from the June peak of approximately $163 billion to $100 billion, a cumulative decrease of about $63 billion, with a decline of 39%, marking the largest drop since April 2025. During the same period, leveraged semiconductor ETFs accounted for about 63% of all leveraged ETF outflows in the United States.
Analysis suggests that the sharp decline in AUM reflects capital withdrawal rather than investors taking profits. As leveraged ETF flows are usually seen as a real-time indicator of speculative positioning, the large-scale outflow from the semiconductor sector is sending a clear risk-off signal. From a cross-asset perspective, overall sentiment towards high beta risk assets remains weak. As leveraged technology stock positions continue to retreat, market liquidity often tightens further.
However, the current AUM of leveraged semiconductor ETFs is still about 400% higher than in January 2023. If market momentum continues to deteriorate, there is still room for further outflows. For MU contract traders on the Hyperliquid platform, large-scale withdrawals of leveraged semiconductor funds in history have often been accompanied by significant directional volatility in semiconductor stock prices. Continuing outflows can be seen as a leading indicator worth following.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
More than 20 billions spent this year! Eli Lilly (LLY.US) CEO: We will target “white spaces” in pharmaceuticals and continue to pursue larger-scale mergers and acquisitions.
Eli Lilly CEO Dave Ricks stated that investors can expect the company to pursue larger-scale deals, as it is extensively searching for assets in the "white spaces" of the scientific field.
Is the “AI bank run” coming? Apollo warns: AI assistants may drain banks' cheap deposits, which will pose risks to the financial system
Torsten Slok, Chief Economist at Apollo Global Management, stated that if consumers begin to heavily rely on AI assistants such as Muse under Meta and transfer cash to higher-yielding accounts, it could pose risks to the financial system.
CNY: How to resolve the dilemma between bulls and bears?
