Over the past six months, the demand from retail investors for exchange-traded funds (ETFs) based on gold has tripled. As of March 2026, the total volume of such investments since the second quarter of 2025 has exceeded $70 billion.
This is reported by Finway
Growing Interest in Leveraged ETFs
A new quarterly report from the Bank for International Settlements (BIS) highlights that the rally in the precious metals market at the end of 2025 and the beginning of 2026 was primarily driven by the activity of retail investors, as well as ETFs that use leverage. According to experts, these products have a significant impact on market dynamics, as they require regular rebalancing and can amplify both price increases and decreases.
“The heightened interest of retail investors in precious metals, realized through ETFs, has contributed to intensified price movements. The contribution of leveraged funds has been particularly significant, as their mechanics require regular rebalancing of positions,” the study states.
With the rising value of gold, these ETFs increase their positions, creating an additional influx of capital. Conversely, during market corrections, they reduce investments, leading to additional pressure on prices. According to The Kobeissi Letter, in just the last six months, the volume of retail investments in “gold ETFs” has grown from $20 billion to $60 billion.
Record Prices and Market Correction
Institutional investors, on the other hand, reduced their investments by $1 billion during the same period. Massive sales of gold-based ETFs began among institutions in November 2025, and this trend intensified by January 2026. During a three-day correction, the price of gold fell by 20%.
At its peak in late January 2026, gold reached a historic high of over $5500. After that, the market experienced a significant decline, as prices proved to be excessively inflated. Analyst Mike McGlone from Bloomberg Intelligence had previously warned about a potential overvaluation of the asset. As of March 2026, the price of gold had decreased to $4692, which is a 15% drop from the peak level.
A similar trend is observed in the silver market, where the decline over the past months has reached 40%.
“The sharp drop in prices and the spike in volatility in the precious metals market indicate the role of flows from retail investors, as well as the intensification of price movements due to forced sales by leveraged funds and trend-following investors,” BIS noted.
At the same time, despite the growing interest in gold, retail investors’ attention to cryptocurrencies remains low. Since the beginning of October 2025, the capitalization of this sector has decreased by almost 40%.