According to CoinRepublic, the U.S. Securities and Exchange Commission (SEC) has issued warning letters to crypto ETF providers, restricting the issuance of ETFs with leverage above 200% or 2X. The move aims to counter volatility and price manipulation in the market, following a period of extreme leverage in late 2025 that led to record open interest and $19 billion in liquidations on October 10. The cap is seen as an investor protection measure but may reduce inflows into leveraged crypto ETFs and impact trading strategies reliant on volatility.
U.S. SEC Cracks Down on Leverage in Crypto ETFs
The Coin RepublicShare
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