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Eric Balchunas

Eric Balchunas

Senior ETF Analyst, Bloomberg Intelligence

Appears in 1 story

Notable Quotes

“Looks like the SEC is pushing back on all the 3x and 5x filings. They were trying to use a loophole to get around the 200% VaR. Honestly, it’s for the best. I’m as libertarian as they come, but 2x is plenty of heat.”

Stories

SEC draws a hard line on ultra–leveraged stock and crypto ETFs

Rule Changes

Prominent outside analyst shaping public understanding of ETF leverage rules

In late 2025, SEC staff sent warning letters to nine ETF issuers, including Direxion and ProShares. The letters froze applications for 3x–5x leveraged ETFs tied to single stocks, sectors, and crypto assets including Bitcoin and Ethereum. The SEC staff cited Rule 18f‑4's value‑at‑risk cap and the requirement that the unleveraged underlying asset be the designated reference portfolio, which established that new ETFs cannot legally target more than 200% exposure.

Updated 6 days ago