ETF trading is taking over the US stock market: ETFs now account for 37% of total US stock market volume, the highest monthly average on record. This percentage has soared +13 points since the start of 2025. This also surpasses the previous peaks of ~36% during the 2020 pandemic crash and ~36% in late 2018. Institutional investors are increasingly using ETFs as the primary tool for hedging, shorting, or reducing exposure to the broader market, rather than selling individual stocks. In other words, record ETF activity signals how aggressively hedge funds are repositioning as volatility intensifies, exaggerating market moves. This market is full of fear.(The Kobeissi Letter)