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Wall Street’s push to launch ever-riskier leveraged exchange-traded funds is picking up steam, as issuers test the boundaries of what is legally permissible in the U.S. with a recent flurry of filings.
Over the past few weeks, at least three ETF issuers — Volatility Shares, ProShares and T-Rex — have sought permission from the Securities and Exchange Commission to launch new leveraged funds. If approved, these products would offer investors the opportunity to magnify daily swings in the Dow Jones Industrial Average
DJIA; shares of artificial-intelligence darlings Nvidia Corp. NVDA and CoreWeave CRWV; and cryptocurrencies, including bitcoin BTCUSD and XRP, by as much as 5x.