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From punting to protection: Short & leveraged ETFs emerge as hedging tools
Etftrends· 2025-09-25 13:37
Core Insights - Short and leveraged ETFs are increasingly being utilized as risk management tools by sophisticated investors, moving beyond their traditional role as speculative instruments [1][4][6] Group 1: Academic Findings - A recent study indicates that high levels of shorting in US broad market ETFs are often followed by positive index performance, suggesting a hedging strategy rather than speculative betting [2][3] - The relationship between short interest and market performance contradicts previous assumptions that higher short interest leads to lower future returns [3] Group 2: Market Trends - Short and leveraged ETFs currently manage approximately $147 billion in assets globally, nearly double the amount from 2017, indicating significant growth in this sector [6] - The perception of these products is evolving, with experienced investors increasingly using them for dynamic risk management rather than purely for speculation [6][7] Group 3: Use Cases - Retail clients are using inverse ETFs to reduce exposure to high-valued US equities without incurring tax liabilities, allowing them to hedge without selling assets [4][5] - Market makers are leveraging these ETFs as efficient tools for hedging trading positions, providing a streamlined method to manage their hedge books [5] Group 4: Investor Demographics - Over half of the assets in short and leveraged ETFs are held by institutional investors, which challenges the notion that these products are primarily for retail investors [7] - In Europe, while the market is smaller, there are signs of increasing interest from professional investors in using these products for portfolio risk management [8]
情绪化了！不要眼红！周五，大盘走势分析
Sou Hu Cai Jing· 2025-09-25 12:59
Market Sentiment - The current market sentiment is characterized by emotional reactions, particularly among investors who are optimistic about technology stocks despite high valuations [1][3] - Investors who sold technology assets have realized significant gains, while those who bought in recently are feeling left out of the rally [3] Investment Strategies - There is a notable difference in performance between investors: those who bought "old tech" assets have seen returns close to 100% over the past year, while those investing in "new tech" assets have seen returns of less than 20% [1] - The article emphasizes the importance of understanding the difference between investing and speculating, suggesting that many investors still struggle with this concept [3] Market Trends - The article predicts that the major indices will not decline before the holiday season and may even reach new highs, driven by sectors like liquor, securities, banking, and insurance [5] - The current market behavior is compared to earlier in the month, where a shift from banking stocks to technology stocks is anticipated, indicating a controlled market rhythm [5] Personal Investment Reflections - The author reflects on their own investment experience, noting that after reducing exposure to the ChiNext index, they have limited holdings in technology stocks, which has affected their ability to hedge against market downturns [7] - The need for a balanced mindset and patience in navigating the market is highlighted, especially after experiencing fluctuations in portfolio value [7]
X @Bloomberg
Bloomberg· 2025-09-24 22:14
Speculators seeking to profit from the selloffs racing through Argentina’s markets were stopped dead in their tracks by a powerful investor willing to take the opposite side of the trade: The US government https://t.co/52I2EscLdD ...
X @Ignas | DeFi
Ignas | DeFi· 2025-09-20 10:46
I admit I was wrong on Runes.I thought they were one of the most fun crypto native innovations this cycle in a market dominated by tradfi and macro narratives.Memecoins on Bitcoin? Fungible tokens were supposed to be impossible on BTC and yet they were.Casey, the creator of Runes, said he wanted to bring speculation, gambling and fun to Bitcoin.Not so fun losing money. Maybe the bounce is not coming.But beyond speculation, Runes could have added more fees, more developers and more users to Bitcoin while kee ...
X @mert | helius.dev
mert | helius.dev· 2025-09-18 19:15
Core Concepts - Reflexivity, where investors' beliefs shape the market and vice versa, and connectivity are crucial for understanding the future of finance, markets, and crypto [1] - The internet and social media have accelerated the reflexive loop by connecting information and people globally [2] - Crypto transforms information into value, further accelerating speculation [2] Investment Implications - Storytelling is increasingly important as money flows based on belief [2] - Awareness of the reflexive loop is crucial before making investments [2] Market Dynamics - Speculation is inherent and accelerating in markets [2] - Perps, prediction markets, and memecoins represent different forms of speculation on outcomes [2]