According to Bloomberg, the market frenzy following Trump's election has cooled in the stock and corporate credit sectors, but enthusiasm for risk investment in Wall Street's speculative sector is on the rise. ETF trading related to cryptocurrencies and large tech stocks is active, driving strong performance in risk assets against the backdrop of economic prosperity and Trump's promises.
Two leveraged funds related to MicroStrategy saw an influx of $420 million this week, pushing its stock up 24%. This investment demand has driven up MicroStrategy's price, enabling it to raise more funds, further supporting Bitcoin.
The daily rebalancing of leveraged ETFs may exacerbate the volatility of underlying assets. Nomura Holdings estimates that leveraged ETFs purchased $2.1 billion of U.S. stocks at Thursday's close, setting a record high.
