ProShares Withdraws Leveraged ETFs After SEC Concerns
ProShares Withdraws Leveraged ETFs Following SEC Review
ProShares has decided to withdraw its proposed lineup of leveraged exchange-traded funds (ETFs), which were set to offer 3x daily exposure to various digital assets and technology stocks. This decision came after the U.S. Securities and Exchange Commission (SEC) requested revisions to the ETF filings.
Key Takeaways
- The SEC's inquiry halted ProShares' plan for leveraged ETFs linked to major stocks and cryptocurrencies.
- ProShares withdrew the filing without selling any related securities.
The SEC's Division of Investment Management expressed concerns regarding the post-effective amendments for ETFs aiming for more than 200% leveraged exposure. The regulatory body questioned whether the leverage risk was accurately measured using the actual securities or indices they track.
The SEC's letter identified several ProShares Daily Target 3x ETFs across various sectors, including Bitcoin, Ethereum, XRP, AI, and semiconductors. As a result, ProShares filed to withdraw the post-effective amendment to its registration statement.
The abandoned ETF products included ProShares Daily Target 3x Bitcoin, Ether, Solana, and XRP. Additionally, the filing covered leveraged funds targeting individual tech stocks like Amazon, Coinbase, Google, and Tesla.
In its withdrawal request, ProShares stated that it "has elected not to proceed with the registration of the Funds," confirming that no securities were sold in connection with the filing.