Elections Boosted ETF Leverage Demand — SEC Just Slammed the Door

[bonk]

After the 2024 U.S. presidential election, optimism around a friendlier crypto regulatory climate sent demand soaring for leveraged ETFs.
But the SEC’s latest move effectively shuts down hopes for 3x–5x Bitcoin or Ethereum ETFs anytime soon.
While leveraged ETFs avoid margin calls that plague derivatives, they still pose major risks—especially in sideways markets where compounded losses quietly stack up.
The SEC is signaling: if you want leverage, futures aren’t going anywhere—but ETFs won’t be the new Wild West.

[Nahid Hossen]

Election hype pushed leverage too far, and the SEC hit the brakes.

[Abdul Khan]

Regulators move fast when retail excitement gets risky.