U.S.-listed exchange-traded funds (ETFs) have reached a record $12.19 trillion in assets by the end of August 2025, marking a significant increase from $10.35 trillion at the end of 2024. This growth is reshaping capital markets and challenging the traditional influence of the Federal Reserve. In August alone, investors added $120.65 billion to ETFs, with year-to-date inflows reaching $799 billion, surpassing the previous full-year record of $643 billion in 2024. Major providers such as iShares, Vanguard, and State Street's SPDR dominate the market, controlling nearly three-quarters of U.S. ETF assets. Crypto-linked ETFs, including those tied to Bitcoin and Ether, manage over $120 billion combined. The rise of ETFs, which absorb funds on a set schedule, may reduce market sensitivity to central bank signals, raising questions about the Fed's future impact on financial markets.