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Leveraged Long ETF Inflows Top $12 Billion as Traders Buy Dips

He characterized the activity as dip buying followed by profit-taking during market rebounds. The funds are designed to magnify an index’s daily moves.

Blank investment tiles rest beside a rising brass market track / TokenPost.ai
Blank investment tiles rest beside a rising brass market track / TokenPost.ai

More than $12 billion flowed into leveraged long ETFs in recent weeks as traders bought market declines. The activity reflected a pattern of buying dips and taking profits during rebounds.

Leveraged long ETFs are designed to magnify an underlying index’s daily performance. That can increase gains during rallies, while the products’ volatility also carries significant risk.

The reported buying suggests some traders were willing to take on risk even as crypto markets showed mixed signals.

Enna Lee

Reporter

Enna Lee reports on investing and digital-asset markets for TokenPost. Send corrections or tips to info@tokenpost.com.

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