FinancePolicy

Regulators Face Test With Proposed 5x Leveraged ETFs Amid Government Shutdown

Volatility Shares has filed for regulatory approval of 27 leveraged ETFs, including the first-ever 5x leveraged single-stock and crypto funds. The SEC’s ability to review these high-risk products is complicated by the ongoing government shutdown, according to reports.

Unprecedented Leverage Proposed for ETF Market

The ETF market, traditionally known for relatively conservative investment vehicles tracking broad market indices, could be heading toward significantly riskier territory. According to recent filings, asset management firm Volatility Shares has submitted applications for 27 leveraged ETFs, including what would be the first-ever 5x leveraged single-stock and cryptocurrency funds.