The U.S. Securities and Exchange Commission (SEC) has issued letters to issuers of high-leverage ETFs, including those offering more than 2x leverage exposure, demanding detailed responses to risk concerns. This move affects applications for ETFs, including some crypto-related products, and halts their review until satisfactory responses are provided. ProShares, known for its leveraged crypto ETFs, is among the named entities. The SEC highlighted that high-leverage products could amplify market volatility and investor losses. While several tech and crypto-related leveraged ETFs are already available in the U.S. market, the timeline for new proposals may be impacted by this regulatory scrutiny.
SEC Halts Review of High-Leverage ETF Applications Over Risk Concerns
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