SEC Issues Warning Letters to ETF Issuers Over Leverage Concerns

A recent optimistic outlook for cryptocurrency ETFs, fueled by Vanguard Group’s announcement of allowing Bitcoin, Ethereum and other crypto-related funds, has been abruptly halted by a fresh warning from the SEC. The U.S. Securities and Exchange Commission (SEC) has sent warning letters to several ETF providers halting their application submissions for leveraged crypto ETFs exceeding 200% exposure to underlying assets. Nine providers, including Direxion and ProShares, received these notices on December 2nd, as reported by Reuters.