JPMorgan: $26B of Leveraged ETF Selling Intensified Friday’s Market Crash

JPMorgan analysts say leveraged exchange-traded funds (ETFs) significantly worsened Friday’s stock market crash, contributing approximately $26 billion in forced selling. 

The selloff came after threats of new U.S. tariffs on China sparked fear across financial markets. As prices dropped, holders of leveraged ETFs were forced to sell more as these products magnify moves both up and down. 

This cascade put pressure on options dealers, who scrambled to cover exposure. Their actions further amplified losses across major indices. 

Despite rebound attempts on Monday after trade-war concerns eased, safe-haven assets like gold hit record highs, reflecting persistent market jitters about macro risk. 

The report notes how leveraged ETF products have been proliferating in 2025. Though they still represent a small slice of total ETF assets (~1%), they account for 33% of new ETF launches this year. 

JPMorgan warns that more volatility may lie ahead if leveraged ETF selling continues to interact with macro surprises. A spokesperson declined additional comment.