The asset size of leveraged semiconductor ETFs has shrunk by 39% from its June peak, marking the largest decline since April 2025.

According to data from the Kobeissi Letter, the assets under management (AUM) of leveraged semiconductor ETFs have fallen from their June peak of roughly $163 billion to $100 billion, a cumulative decline of about $63 billion, or 39%—the largest drop since April 2025. Semiconductor ETFs accounted for approximately 63% of all capital outflows from U.S. leveraged ETFs over the same period. Analysts argue that the sharp decline in AUM reflects capital flight rather than investors voluntarily taking profits. Since capital flows into leveraged ETFs are generally regarded as a real-time indicator of speculative positions, the large-scale capital outflow from the semiconductor sector sends a clear risk-off signal. From a cross-asset perspective, sentiment toward high-beta risky assets is broadly weak, and sustained outflows from leveraged tech stock positions tend to further tighten market liquidity. However, the current asset size of leveraged semiconductor ETFs is still around 400% higher than it was in January 2023, leaving room for additional capital outflows if market momentum continues to deteriorate. For MU contract traders on the Hyperliquid platform, past large-scale outflows from semiconductor leveraged funds have often coincided with significant directional swings in semiconductor stock prices, so the ongoing worsening capital flows can be seen as a leading indicator worth monitoring.