Wall Street applies for triple-leveraged ETF to test regulators' risk tolerance
Jinse Finance reported that three asset management companies are planning to launch exchange-traded funds (ETFs) that amplify the price volatility of Tesla, bitcoin, and other assets to rare levels, once again testing regulators' tolerance for ultra-high-risk financial products. Defiance ETFs, Themes, and Direxion have submitted applications for leveraged products designed to deliver triple the daily returns of some of the market's most popular trading assets. This move is quite innovative: due to the volatility rules set by the U.S. Securities and Exchange Commission (SEC), which limit the level of leverage funds can offer, there are currently no triple-leveraged single-stock ETFs in the U.S. market.
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