The risk appetite in the market is significantly increasing. 📈 The ratio of leveraged long ETF assets to short positions has reached a record high of 12.5x.

This increase is nearly three times since the market bottom in April. The total long position ETF assets are now close to a record level of 146 billion USD. Meanwhile, the inverse ETF assets have decreased to only 12 billion USD, the lowest level since the beginning of 2025.

To put it in perspective, the similar ratio was just 1:1 at the bear market bottom in 2022. In fact, it was even lower than 1x during the sharp decline in 2020.

Since 2022, the total leveraged long position ETF assets have quadrupled, while short position assets have halved. This indicates that investors are taking on risk at an extreme level. 👀