The U.S. SEC issued warning letters to nine ETF providers, requesting responses to risk issues regarding "proposed high leverage."

According to Reuters, the U.S. Securities and Exchange Commission (SEC) has sent warning letters to nine ETF providers, including Direxion, ProShares, and GraniteShares, demanding a thorough response to risk issues regarding ETFs that intend to provide more than 2x leveraged exposure (including some crypto products). "We are writing to express our concerns about registered exchange-traded funds that aim to provide more than 2x leveraged exposure to the underlying indices or securities."