🇺🇸 SEC HALTS HIGH RISK 3-5X LEVERAGE CRYPTO & STOCK ETFS



The warning letter cited violations of Rule 18f-4, which caps fund exposure at 200% of their value-at-risk.

Volatility Shares filed the most aggressive proposals, seeking approval for 5x leveraged ETFs tied to $BTC, $ETH, Tesla, and Nvidia. These products would amplify a 10% daily move into a 50% gain or loss for investors.

The company submitted 27 different ETF applications in total, including products covering Solana, XRP, and Strategy.

The current regulatory framework establishes 2x leverage as the practical ceiling for ETFs. This should end any speculation about 5x cryptocurrency products entering the TradFi market anytime soon.
BTC0.41%
ETH0.65%
SOL0.63%
XRP0.09%
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