Record flows in the funds negotiated on the stock market can reshape the markets in a way that even the federal reserve cannot control.
The new data show that the FNB classified by the United States has become a dominant force in the capital markets. According to a press release on Friday by ETFGI, an independent council, the assets invested in the American ETF reached a record of 12.19 billions of dollars at the end of August, against $ 10.35 billions of dollars at the end of 2024. Bloomberg, which highlighted the overvoltage on Friday, noted that the flows questioning the traditional influence of the federal reserve.
Investors paid $ 120.65 billion in ETF in August only, lifting the entries for the start of the year to $ 799 billion – the highest recorded. In comparison, the record for the previous year was $ 643 billion in 2024.
Growth is concentrated among the largest suppliers. Ishares leads with 3.64 billions of dollars of active ingredients, followed closely by Vanguard with 3.52 billions of dollars and the SPDR family of State Street at $ 1.68 Billion of dollars.
Together, these three companies control almost three -quarters of the US ETF market. The ETFs in equities attracted the largest share of August $ 42 billion, while fixed income funds have added $ 32 billion and raw material FNB nearly $ 5 billion.
The FNB linked to cryptocurrency are now a significant piece of the image.
Sosovalue data show that FNB Bitcoin and Ether from the American list manage more than $ 120 billion combined, led by BlackRock Ishares Bitcoin Trust (Ibit) And the trust of Bitcoin of Fidelity of Fidelity Fidelity (FBTC). The FNB Bitcoin alone represent more than $ 100 billion, or about 4% of the market capitalization of 2.1 billions of bitcoin dollars. ETF Ether adds an additional $ 20 billion, despite the launch only earlier this year.
The overvoltage underlines how the ETF – traditional and crypto – have become the vehicle of choice for investors of all sizes. For many, the flows are automatic.
In the United States, much of the money comes from retirement accounts called 401(K)S, where workers put aside part of each pay check.
An increasing part of this money goes into “target date funds”. These funds automatically move investments – gradually moving from bond shares – while savers tackle retirement age. Model portfolios and robo-advisers follow similar rules, automatically directing flows in FNB without investors making daily choices.
Bloomberg has described this as an “automatic pilot” effect: every two weeks, millions of workers’ contributions are channeled in index funds that buy the same action baskets, regardless of the EDF assessments, securities or policy. The analysts cited by Bloomberg say that this regular request helps to explain why the American shares indices continue to climb even if data on work and inflation show signs of tension.
The trend raises questions about the influence of the Fed.
Traditionally, interest rate reductions or increases have sent solid signals that have struck stocks, bonds and products. Lower rates have generally encouraged risk -taking, while higher rates have rekindled it. But with the FNB absorbing hundreds of billions of dollars according to a fixed schedule, the markets can be less sensitive to the indices of the central bank.
This tension is particularly clear this month. The Fed should lower the rates by a quarter on September 17, the actions are near the record summits and the exchanges of gold above $ 3,600 per ounce.
Bitcoin is negotiated at around $ 116,000, not far from its $ 124,000 summit in mid-August.
The FNB of shares, bonds and crypto have experienced strong entries, which suggests that investors are positioned for easier money – but also reflecting a structural tide of passive allowances.
Supporters told Bloomberg that the FNB rise had reduced costs and expanded access to markets. But the criticisms cited in the same report warn that the entry scale could amplify volatility if the redemptions regroup in slowing down, because the ETF move whole baskets of titles at the same time.
As Bloomberg said, this “perpetual machine” of passive investment could reshape the markets in a way that even the central bank has trouble countering.
