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Wednesday Dec 3 2025 18:40
2 min
"The fund’s designated reference portfolio provides the unleveraged baseline against which to compare the fund’s leveraged portfolio for purposes of identifying the fund’s leverage risk under the rule."The SEC has instructed issuers to reduce leverage levels to comply with existing regulations before their applications can be considered, thus dampening the prospects for 3-5x leveraged crypto ETFs in the US market. The SEC's decision to publicly release the warning letters on the same day they were sent to issuers signals a clear intent to communicate their concerns about leveraged products to the broader investment community, as reported by Bloomberg.
Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.
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