ProShares

Stories

SEC draws a hard line on ultra–leveraged stock and crypto ETFs

As of May 2026: Issuer that withdrew several ultra‑leveraged ETF proposals after SEC pushback

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