Core Insights - A new suite of leveraged ETFs proposing to deliver 5x daily returns on single stocks and cryptocurrencies is being filed for approval, which would set a new benchmark for risk in the ETF market [1][3] - The potential upside of these 5x leveraged ETFs is significant, but the associated risks are unprecedented, making them extremely volatile investment products [2][3] ETF Market Context - Currently, the maximum leverage approved for ETFs by the SEC is 3x, primarily for sector or theme-targeted ETFs, while single stock ETFs are capped at 2x [4][5] - Volatility Shares is attempting to secure approval for 27 new leveraged ETFs that would offer 500% exposure to highly volatile assets like Tesla, Nvidia, and cryptocurrencies [3][6] Regulatory Landscape - The SEC's previous stance on leverage has been conservative, with the chances of approving 5x leveraged ETFs previously considered nearly impossible, but the current environment may be more favorable [6][7] - The Trump administration and the SEC have shown increased openness to cryptocurrencies, as evidenced by the approval of spot bitcoin ETFs [7]