Recent data indicates that trading volume for leveraged and inverse ETFs reached an all-time high of nearly 10 billion shares last week, the highest since records began in 2017. However, this surge in trading activity coincides with a dramatic decline in leveraged ETF assets, which have fallen by $45 billion year-to-date, marking a 36% drop in just three months. This decline is notable as it mirrors the pace of losses seen during the 2022 bear market, which took approximately six months for a similar percentage decrease. Additionally, investors experienced a historic loss of $25.7 billion in leveraged ETFs last week, the largest loss recorded for this group. The exposure of leveraged Bitcoin ETFs has also diminished, reaching its lowest level since July 2024.