ProShares has stopped plans to launch a family of 3x daily leveraged ETFs after the U.S. Securities and Exchange Commission’s Division of Investment Management challenged the issuer’s filings and asked that they be revised or their effectiveness be deferred. The SEC’s letter focused on funds proposing more than 200% (3x) exposure and raised questions about whether the post‑effective amendments adequately measured leverage risk using the actual securities or indices the products would track.
The regulator flagged multiple proposed ProShares Daily Target 3x ETFs spanning cryptocurrencies, equities, commodities and sector exposures. In response, ProShares withdrew the post‑effective amendment to its registration statement and said it has elected not to proceed with registering the funds. The firm confirmed that no securities were sold under the filing.
Cryptocurrency products listed in the withdrawn filing included ProShares Daily Target 3x Bitcoin, ProShares Daily Target 3x Ether, ProShares Daily Target 3x Solana and ProShares Daily Target 3x XRP. The filing also covered 3x leveraged ETFs tied to individual technology‑related companies such as Amazon, Coinbase, Circle, Alphabet (Google), MicroStrategy, Nvidia, Palantir and Tesla.
By questioning both the measurement methodology for leverage risk and the appropriateness of post‑effective amendments for funds seeking greater than 2x leverage, the SEC effectively paused ProShares’ effort to introduce highly leveraged crypto and tech exposures to the market.