According to Coinpedia, the U.S. Securities and Exchange Commission (SEC) has halted the approval of 3x and 5x leveraged crypto ETFs, citing concerns over Rule 18f-4 risk limits and potential market instability. The agency warned that ultra-leveraged products could collapse during market volatility, causing broader instability. Firms like Direxion and VolShares had proposed such ETFs, but the SEC has asked them to revise or withdraw their applications. Analysts have expressed mixed reactions, with some supporting the move as a necessary precaution and others criticizing it as an overreach.
SEC Blocks 3x and 5x Crypto ETFs Over Market Stability Concerns
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