5x Tesla, Bitcoin, Strategy ETFs In Doubt As SEC Signals Uncertainty During Shutdown
The U.S. Securities and Exchange Commission (SEC) has indicated uncertainty regarding whether recent filings for highly leveraged ETFs, such as Volatility Shares’ planned 5x products, would be approved, raising new questions about leverage limits in the U.S. market.
• MSTR stock is moving in positive territory. Watch the momentum here.
Since the U.S. government shutdown, the SEC has seen a flood of 3x and 5x leveraged equities seeking ETF registration statements, said Brian Daly, director of the SEC’s division of investment management, according to Reuters. Daly said that it is uncertain whether these ETFs would be in compliance with the Derivatives Rule (Rule 18f-4), which primarily caps leverage at 2x.
Volatility Shares submitted on Wednesday for 27 extremely leveraged ETFs, which include the first-ever to propose …
About The Author
