After three years of big gains in the S&P 500, investors are starting to wonder what’s next. The stock market has seen a strong run, especially through exchange-traded funds (ETFs), but history shows that these kinds of rallies often don’t last forever. Analysts are warning that periods of strong performance can be followed by sharp corrections. A similar pattern happened in 2021, when the S&P 500 soared, only to fall nearly 20% in 2022 after the Federal Reserve raised interest rates to fight inflation. That drop cooled off excitement around tech stocks and slowed down ETF growth.

Now, we’re seeing a similar setup. Back in 2021, tech stocks drove a lot of the gains. Today, spending on artificial intelligence (AI) is the big trend. But some experts are questioning whether all this money being poured into AI by big tech companies will really pay off. Since October, the S&P 500 hasn’t moved much—it’s been trading sideways. This shows that investors are feeling uncertain, not confident. ETF analyst Eric Balchunas has warned that 2026 could bring more market turbulence, including possible failures in risky ETFs. For example, the GraniteShares 3x Short AMD ETF recently lost almost 90% of its value in just one day.

In the crypto ETF world, things are also shifting. Bitcoin ETFs, especially BlackRock’s IBIT, brought in a lot of money early in the year, even though Bitcoin prices were dropping. This shows that some big investors still believe in the long-term value of Bitcoin. However, as Bitcoin fell about 30% from its October peak, IBIT started seeing money flow out. Ethereum ETFs also saw consistent withdrawals in December.

At the same time, newer ETFs based on other cryptocurrencies like XRP and Solana are starting to gain popularity. Spot XRP ETFs have seen daily inflows since launching in November, and Solana ETFs are attracting money despite falling prices. Supporters say this means investors are shifting toward crypto assets with clearer rules and more real-world use cases. Others think it’s just typical excitement over new products that might fade.

Looking ahead to 2026, many crypto ETF applications are still waiting for SEC approval. It could be a key year for deciding whether this shift in investor interest is here to stay or just another short-term trend. The outcome will help shape the future of both crypto markets and the broader ETF space on Wall Street.

**Keywords:** S&P 500 performance, ETF market trends, AI investment risks, crypto ETF inflows, Bitcoin ETF outflows, Ethereum ETF trends, XRP ETF growth, Solana investment, SEC crypto ETF approvals, market volatility predictions