SEC says 'unclear' if proposed 3x and 5x leveraged ETFs would be approved

By Suzanne McGee and Ateev Bhandari (Reuters) -The U.S. Securities and Exchange Commission told Reuters that it was "unclear" whether the dozens of recent filings by asset managers to issue highly leveraged ETFs would be approved by the agency. Since the U.S. government shutdown began, "the agency has received a large number of registration statements for ETFs seeking to offer 3x and 5x leveraged, equity-linked exposure," said Brian Daly, director of the SEC's division of investment management. "It is unclear whether these ETFs would comply with the Derivatives Rule (Rule 18f-4), which generally limits leverage to 2x." On Wednesday, ETF issuer Volatility Shares filed to launch a total of 27 highly leveraged ETFs, including the first-ever proposed 5x ETF for the U.S. market, in a move that