U.S. leveraged ETF assets have surged from $120 billion in early April to over $200 billion, driven largely by price gains in products like TQQQ and UPRO. An analyst on the Odd Lots podcast warned that the rapid growth, described as meteoric, has made the daily rebalancing of these funds a significant market force. A 10% drop in the underlying index could trigger more than $10 billion in mechanical selling, as leveraged ETFs now add enough negative gamma to overwhelm the stabilizing effect of covered-call products. The VIX sits at 16.90, below its trailing 12-month average, even as the pool of forced sellers expands. The analyst emphasized that the concern is less about the current asset level than the speed of accumulation and the potential to amplify the next selloff.