Core Insights - The popularity of speculative investing tools has surged since the Covid pandemic, with a significant increase in retail traders entering the market [1] Group 1: Trading Volume Projections - Leveraged and inverse funds are projected to have average daily trading volumes of 1.41 billion in 2025, representing a growth of over 130% from 2024 and 250% from 2020 [2] - Average daily options volume is expected to reach 58 million in 2025, reflecting a 26% increase from the previous year and more than double the volume seen in 2020 [3] - Daily volumes for leveraged funds and options trading have grown at compound annual rates of 29% and 16%, respectively, from 2020 to 2025 [3] Group 2: Market Dynamics - Stock volume has expanded at a yearly pace of 10%, but stocks still significantly outpace leveraged funds and options in terms of market volume [4] - The total number of active leveraged funds increased by 50% in 2025, marking the largest annual growth since 2007, with approximately 80% of these funds tracking equities [5] Group 3: Investor Behavior - There has been a notable increase in interest in lesser-known leveraged funds, such as the Daily South Korea Bull 3X Shares (KORU), as market conditions have favored these investments [6] - Retail traders have engaged in dip-buying strategies, particularly in leveraged bull funds, following market declines, which has contributed to strong returns in 2025 [7] - Clients typically hold smaller amounts in leveraged funds compared to traditional investments, suggesting these funds are viewed as "satellite" positions within portfolios [7] Group 4: Future Outlook - While it is uncertain if leveraged funds can maintain their rapid growth, demand is expected to persist as traders utilize these products to capitalize on market rebounds after pullbacks [8]