Record-breaking flows into U.S.-listed ETFs hit $12.19 trillion, challenging the Federal Reserve’s influence. August saw $120.65 billion inflows, reaching a record $799 billion year-to-date. iShares, Vanguard, and SPDR lead assets. Equity ETFs drew $42 billion, fixed-income $32 billion, and commodity ETFs $5 billion.

Crypto-linked ETFs manage over $120 billion, with Bitcoin ETFs alone at $100 billion. ETFs, traditional and crypto, are preferred by investors of all sizes. U.S. retirement accounts, like 401(k)s, drive automatic flows into ETFs. Target-date funds and robo-advisers automate investments, driving ETF growth.

ETFs on autopilot draw millions of workers’ contributions biweekly, funneling into index funds irrespective of market conditions. Analysts note this steady demand keeps U.S. equity indexes climbing despite economic data signals. The trend raises concerns about the Fed’s influence on markets.

Interest rate changes traditionally impacted market sentiment, but ETFs absorbing billions on a set schedule may reduce sensitivity to central bank cues. With the Fed expected to cut rates, stocks near record highs, gold above $3,600, and Bitcoin trading near all-time highs, ETF inflows reflect both positioning for easier money and passive allocations.

Read more at Yahoo Finance: Are the Record Flows for Traditional and Crypto ETFs Reducing the Power of the Fed?