According to @KobeissiLetter, US margin debt rose by 67 billion dollars in September 2025 to a record 1.13 trillion dollars, highlighting a rapid build-up in investor leverage, source: The Kobeissi Letter on X, Oct 17, 2025. @KobeissiLetter also reports that 5x leveraged ETFs have been proposed to the US SEC, a development that would materially increase accessible leverage in public markets if approved, source: The Kobeissi Letter on X, Oct 17, 2025. Leverage and margin calls are documented to amplify price swings and forced selling during stress, which heightens tail risk when aggregate margin debt is elevated, source: Federal Reserve Financial Stability Report, Nov 2023. For crypto, correlations between BTC and ETH and equities have strengthened in recent years, raising spillover risk from equity deleveraging into digital assets during volatility spikes, source: IMF Global Financial Stability Note, Jan 2022. Trading takeaways: reduce net and gross leverage, monitor equity volatility and liquidity conditions, and watch for deleveraging waves that can transmit to BTC and ETH via cross-asset risk channels, source: Federal Reserve Financial Stability Report, Nov 2023; IMF Global Financial Stability Note, Jan 2022.

According to @EricBalchunas, VolShares has filed for 5x leveraged single-stock and crypto ETFs covering COIN, CRCL, GOOG, MSTR, NVDA, PLTR, TSLA, and Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP; source: @EricBalchunas on X, Oct 14, 2025. He added that 3x products have not yet been approved, making the 5x requests notable for both crypto-linked equities and top digital assets; source: @EricBalchunas on X, Oct 14, 2025.