SEC Weighs Approval for 4x Leveraged ETFs Amplifying Market Swings Daily
Published Date: 12/29/2025
Notice
Summary
The SEC is deciding whether to approve or reject Cboe BZX Exchange’s plan to list and trade two new GraniteShares ETFs that aim to multiply daily moves of the Russell 1000 index by 4 times—one going up and one going down. This affects investors looking for high-risk, high-reward options and could shake up trading starting early 2026. The SEC is asking for public feedback before making a final call.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
SEC Reviews 4x Long/Short Russell ETFs
The SEC is deciding whether to allow two GraniteShares ETFs that would seek daily returns equal to 4 times (4x) or -4 times (-4x) the daily performance of the Russell 1000 Index. The Commission has instituted proceedings and is requesting written comments by January 20, 2026 and rebuttals by February 2, 2026 about whether listing these funds would prevent fraud and protect investors.
Funds Use Derivatives, Stay Fully Invested
The proposed funds would seek their 4x or -4x exposure by investing in over-the-counter swaps, futures, options, forward contracts, and other financial instruments, and may hold cash and cash equivalents as collateral. The filing says the funds expect to remain fully invested in these Russell-linked derivative products and that the exact mix of instruments may change over time at the adviser’s discretion.
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