Market Risk Appetite Reaches All-Time Highs 📈

The ratio of leveraged long ETF assets versus shorts has surged to an unprecedented 12.5x. This marks an all-time high, indicating a significant shift in market sentiment.

This ratio represents nearly a 3x increase since the market low observed in April. Long ETF assets are approaching a record $146 billion.

Conversely, inverse ETF assets have declined to $12 billion, reaching their lowest point since early 2025. This further highlights the current bullish leanings.

For historical context, this ratio was 1:1 during the 2022 bear market low, and even fell below 1x during the 2020 market crash.

Since 2022, leveraged long positions have quadrupled, while short positions have halved. This trend suggests investors are currently embracing extreme risk levels.