U.S.-leveraged ETF assets have soared by over $30 billion in the past month alone, marking a massive 40% rebound to approximately $105 billion. This sharp recovery follows a steep $50 billion drop between January and mid-April 2025.

This $30 billion surge in market cap within a single month stands in stark contrast to the 2022 bear market, when leveraged ETF assets declined by $30 billion and took seven months to recover. In 2022, the market cap of leveraged ETFs experienced a significant decline but gradually climbed back in the following months, as seen on the chart.

In 2025, the drop was even sharper. From a peak of over $120 billion in early 2025, the total market cap of leveraged ETFs plunged below $80 billion — a massive $50 billion fall in a short span. However, the chart now shows a dramatic V-shaped recovery, with the market cap climbing back toward the $105 billion level. The red box in the chart highlights this intense period of volatility, showcasing both the steep fall and the rapid rebound.

Adding to the bullish sentiment, the 3x leveraged long Nasdaq 100 ETF, $TQQQ, is up nearly 80% since its April 8th low.

Risk appetite is surging, with capital flooding back into leveraged products at a pace not seen in years.