BlackRock iShares (IBIT and related crypto ETFs)

Rule Changes

As of May 2026: Dominant provider of spot Bitcoin ETFs, indirectly driving demand for leveraged variants

In late 2025, SEC staff sent warning letters to nine ETF issuers, including Direxion and ProShares. The letters froze applications for 3x–5x leveraged ETFs tied to single stocks, sectors, and crypto assets including Bitcoin and Ethereum. The SEC staff cited Rule 18f‑4's value‑at‑risk cap and the requirement that the unleveraged underlying asset be the designated reference portfolio, which established that new ETFs cannot legally target more than 200% exposure.

Updated May 10