According to The Kobeissi Letter, the SEC sent multiple warning letters to ETF providers amid a surge in market volatility, effectively blocking the introduction of new 3x–5x leveraged ETFs. Source: The Kobeissi Letter. The SEC has repeatedly warned that leveraged and inverse ETFs are complex products that magnify daily index moves and are intended primarily for short-term trading by sophisticated investors, underscoring the risk concerns highlighted in these letters. Source: U.S. SEC Office of Investor Education and Advocacy. The letters signal heightened scrutiny of high-leverage ETF filings and indicate that launches of new 3x–5x products are on hold pending further regulatory guidance. Source: The Kobeissi Letter. For crypto markets, existing spot Bitcoin and spot Ether ETFs operate under SEC oversight, and any proposals for 3x–5x crypto ETFs would be evaluated under the same complex product and derivatives risk framework. Source: U.S. SEC.