US SEC Issues Warning Letters to Nine ETF Providers, Demanding Responses to Risks of "Proposed High Leverage"

Jinse Finance reported, citing Reuters, that the U.S. Securities and Exchange Commission (SEC) has issued warning letters to nine ETF providers, including Direxion, ProShares, and GraniteShares, requiring them to fully address risk issues related to proposed ETFs offering more than 2x leveraged exposure (including some crypto products). "We have sent letters expressing concerns about the registration of exchange-traded funds that are designed to provide more than 2x leveraged exposure to underlying indices or securities," the SEC stated.