SEC Halts 3x Crypto ETFs After ProShares Withdraws Filings Due to Leverage Concerns

The SEC has halted new applications for 3x leveraged crypto exchange-traded funds (ETFs) following a warning from regulators about exceeding federal leverage limits. This action comes after ProShares, a prominent issuer of such products, withdrew its filings for Bitcoin, Ether, Solana, and XRP 3x ETFs after receiving official warnings. The SEC’s move underscores the agency’s commitment to keeping leverage in crypto-ETFs under control following recent volatility in the market.