Crypto Speculation Hits 2024 Lows as TradFi Leveraged ETFs Surge to $239B Record

Source: CryptoNewsNet Original Title: Crypto speculation at 2024 lows as TradFi leveraged ETFs hit record $239B Original Link: Traditional finance leveraged investment products are at a record high, but the appetite for speculative assets remains muted in the cryptocurrency market.

Speculative appetite is cooling among crypto investors, with memecoin dominance versus altcoins hitting a near two-year low last seen in February 2024, according to crypto data platform CryptoQuant.

“Memecoin markets are dead,” wrote CryptoQuant co-founder and CEO Ki Young Ji in a Thursday X post.

In contrast, speculative appetite is soaring among equities investors, as traditional leveraged exchange-traded funds (ETFs) hit a new all-time high of $239 billion in assets under management during the third quarter of 2025, according to Bloomberg data.

The dynamic signals a waning enthusiasm for high-risk digital assets, as speculative appetite is recalibrating to regulated, TradFi leveraged products in less volatile equity markets.

The market dynamic signals a maturation in crypto and equities markets, as risk-taking is “expressed through regulated, familiar products with defined safeguards,” not memecoins that suffer from “thin” liquidity and regulatory uncertainty, according to market analysts.

“A revival would likely require a strong catalyst — such as a new viral narrative, major exchange listings, or decisive price action — to reignite retail interest.”

Crypto investor sentiment yet to recover from October market crash

The appetite of crypto investors remains muted for most cryptocurrencies since the record market crash at the beginning of October, not just for memecoins.

Crypto investor sentiment saw a small recovery from the “Extreme Fear” of 10 recorded on Nov. 23, but the current 29 reading still signals “Fear,” and remains far below the 62 “Greed” level from Oct. 7, before the $19 billion crypto market crash occurred.

Meanwhile, the crypto industry’s best-performing traders by returns, who are tracked as “smart money” traders on blockchain intelligence platforms, are betting on the decline of the leading memecoins and most cryptocurrencies.

Smart money was net short on Fartcoin (FART) for $3.5 million and net short on the Pump.fun (PUMP) token for $1.5 million.

However, the cohort is betting on more upside for Ether (ETH) and decentralized exchange Hyperliquid’s (HYPE) token, signaling a preference for tokens with real revenue-generating blockchain protocols.

The positioning from this cohort may also signal investor fatigue with the memecoin launches of the past cycle, as troubling data is emerging about some of these coins.

On Thursday, blockchain data claimed that about 30% of the Pepe (PEPE) token’s genesis supply was bundled under an entity that sold $2 million a day after the coin’s debut, casting doubt on the memecoin’s fair-launch premise.