High-Leveraged Crypto ETF Applications on Hold After SEC Warnings

In brief

  • The U.S. Securities and Exchange Commission has sent letters to fund managers, raising concerns over proposed, high-leveraged ETFs.
  • The Wall Street regulator halted the review of proposals for some crypto ETFs.
  • A number of leveraged tech stock and crypto ETFs are already trading on U.S. stock exchanges.

The U.S. Securities and Exchange Commission has issued warnings to issuers of high-leveraged exchange-traded funds, including proposed crypto ETFs, citing concerns over potential risks of such products. 

In letters sent Tuesday, the regulator halted the review of the funds until concerns were addressed by the issuers. The SEC reviews applications for ETFs before they start trading on stock exchanges. 

The regulator warned a…

Source link