ProShares has abandoned plans to launch a suite of 3x daily leveraged exchange-traded funds after the U.S. Securities and Exchange Commission’s Division of Investment Management asked the issuer to revise filings or delay their effectiveness.
The SEC’s letter raised concerns about post-effective amendments for funds seeking more than 200% (2x) leveraged exposure, questioning whether the filings properly measured leverage risk using the actual securities or indices the funds would track. The regulator flagged multiple ProShares Daily Target 3x ETFs across equities, crypto, commodities, and sectors.
Following the request, ProShares filed to withdraw the post-effective amendment to its registration statement and said it “has elected not to proceed with the registration of the Funds.” The company confirmed no securities were sold in connection with the filing.
Abandoned products named in the filing included:
– ProShares Daily Target 3x Bitcoin
– ProShares Daily Target 3x Ether
– ProShares Daily Target 3x Solana
– ProShares Daily Target 3x XRP
The filing also covered 3x leveraged funds targeting individual technology-related stocks, including Amazon, Coinbase, Circle, Google (Alphabet), MicroStrategy, Nvidia, Palantir, and Tesla.
ProShares’ withdrawal comes after the SEC explicitly questioned the methodology for measuring leverage risk and the appropriateness of post-effective amendments for funds exceeding 2x leverage, effectively pausing the issuer’s push for highly leveraged crypto and tech exposure.
