CoinOtag
2025-12-03 09:06:27

SEC Raises Concerns Over 3x and 5x Leveraged ETF Filings Citing Rule 18f-4 Limits

The U.S. Securities and Exchange Commission (SEC) has rejected applications for 3x and 5x leveraged exchange-traded funds (ETFs), citing violations of federal leverage limits under Rule 18f-4. This decision prevents funds from exceeding 200% Value-at-Risk (VaR), protecting investors from excessive risks in volatile markets like crypto and equities. SEC's Rule 18f-4 caps leverage at 2x [...]

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