ProShares Drops Plans for Some Highly Leveraged ETFs After U.S. Regulator Moves to Halt Review
GeokHub
Contributing Writer
NEW YORK — Dec 4 (GeokHub) ProShares has withdrawn several of its proposed highly-leveraged exchange-traded funds (ETFs) after the U.S. Securities and Exchange Commission (SEC) paused the review of applications for such products and flagged significant risk concerns.
The firm had sought approval for new ETFs designed to deliver amplified returns — in some cases up to three times the daily performance of underlying stocks. But in recent warning letters, the regulator raised doubts about whether these leveraged structures complied with legal requirements under existing risk rules.
In response, ProShares acknowledged the SEC’s stance, stating that it would withdraw the affected registration requests rather than contest the pause. The decision covers funds tied to broad stock indexes, specific sectors, and even speculative assets.
The development marks a sharp regulatory pushback against highly leveraged investment products, underscoring growing scrutiny over risk exposure and investor protection. For ProShares and similar firms, the withdrawal signals a recalibration of product strategy — at least while regulators enforce stricter leverage guidelines.
