Interesting news - ProShares has finally halted its plans for 3x leveraged crypto ETFs. It concerns Bitcoin, Ether, XRP, and Solana. At first glance, it seems like a typical regulatory decision, but behind it lies a serious issue with volatility.



The SEC simply protected itself. These 3x leveraged Bitcoin ETF products might not track extreme asset fluctuations accurately enough, which means investors could lose money much faster than expected. Data shows that over 350 trading days had at least one asset with 33% daily volatility — that's just an insane figure for such an instrument.

I completely understand the regulators. Leveraged funds are inherently risky, and when you add a 3x multiplier to crypto volatility — it's like playing Russian roulette. ProShares withdrew their applications to try to address these issues, but in reality, it looks like a complete project freeze.
XRP-1.88%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments