The U.S. Securities and Exchange Commission has stepped in to stop the launch of some of the most aggressive exchange-traded funds ever proposed in the country.

The products were designed to deliver three to five times the daily performance of stocks and cryptocurrencies, pushing the limits of how much risk regulators are willing to allow.

The SEC has stopped ProShares from launching new 3× leveraged crypto funds.
They proposed

3× Bitcoin,
3× Ether,
3× Solana,
3× XRP.

The SEC says the funds break leverage rules, so ProShares must fix the filings or withdraw them.
Nothing moves forward until they do.… pic.twitter.com/SXlYAHKgkZ

— 𝗕𝗮𝗻𝗸XRP (@BankXRP) December 3, 2025

ETF Issuers Pull Filings After SEC Flags Leverage Rule Violations

On Tuesday, the agency issued nine warning letters to major ETF providers, including Direxion, ProShares, and Tidal Financial.

In the letters, the SEC said it would not review the filings unless the firms addressed serious regulatory concerns.

At the center of the issue is Rule 18f-4 under the Investment Company Act of 1940, which limits how much leverage a fund can use.

The rule caps a fund’s value-at-risk exposure at 200% of its reference benchmark, a level several of the proposed products appear to exceed.

The targeted funds used derivatives to magnify daily returns. Some were linked to highly volatile assets such as Bitcoin, Ether, Nvidia, and Tesla, with exposure of up to five times the daily move.

No 5x single-stock or crypto ETF has ever been approved in the U.S., and even 3x products have long faced strict limits from regulators.

The SEC told issuers to either adjust their strategies to meet legal requirements or withdraw their filings altogether.

Within a day of the letters being posted, ProShares moved to pull several of its 3x and crypto-related ETF applications.

Market analysts say the SEC’s latest move shows a clear effort to rein in ETF issuers that have been testing the limits of leverage rules.

The filings under scrutiny were widely viewed as attempts to stretch existing regulations to push higher-risk products into the market, an approach the agency has consistently resisted.

SEC Challenges High-Risk ETF Strategies as Leveraged Funds Hit $162 Billion

The decision also interrupts what had been one of the most permissive periods for ETF approvals in U.S. history.

Over the past year, the SEC approved spot Bitcoin and Ethereum ETFs, crypto yield products, and a wave of structured funds built around options income, partial leverage, and downside protection.

The SEC’s green light of spot Bitcoin ETFs opens the floodgates for issuers, but Bitcoin's price has so far stayed flat, defying expectations. When will we see bullish price action? #CryptoNews #BTCETFhttps://t.co/6mKK9Vdam2

— Cryptonews.com (@cryptonews) January 10, 2024

Even during October’s government shutdown, ETF filings continued to surge despite the agency operating with reduced staff.

Several issuers pressed even further. 21Shares submitted an application for a leveraged fund tied to the Hyperliquid token.

Volatility Shares went a step beyond, filing the first proposals for 5x leveraged ETFs linked to both stocks and cryptocurrencies, applications that quickly drew regulatory attention.

With its latest response, the SEC has effectively drawn a boundary on how far leverage will be allowed to go.

Leveraged ETFs have grown rapidly in popularity among retail traders, particularly after speculative activity surged during the pandemic. Total assets across leveraged funds now stand at roughly $162 billion.

The largest of these products, the ProShares UltraPro QQQ, which targets three times the daily return of the Nasdaq 100, has risen nearly 40% this year and holds more than $31 billion in assets.

However, losses across other products show the risks. The Defiance Daily Target 2x Long MicroStrategy ETF is down more than 83% this year, while a similar 2x fund tied to Super Micro has fallen over 60%.

Another metric of the SEC’s concerns was the speed at which it made its warning letters public.

The notices were released on the same day they were issued, a rare step for correspondence that is typically disclosed weeks later. The agency declined further comment, citing the ongoing review process.

Looks like SEC is pushing back on all the 3x and 5x filings, calling them out on the loophole they were trying to use, to get around the 200% VAR, and "requests them to revise the obj and strategy to be consistent with 18f-4 or withdrawal" Honestly, it's for the best. I'm as… pic.twitter.com/J8p6o1ND2B

— Eric Balchunas (@EricBalchunas) December 2, 2025

Bloomberg ETF analyst Eric Balchunas said the SEC is now directly challenging strategies it believes exploit technical gaps in leverage limits, leaving issuers facing a clear choice: adjust their products or abandon them.

The action also coincides with renewed warnings from former SEC Chair Gary Gensler, who continues to caution that most crypto-linked assets remain highly speculative despite growing institutional interest.

The post SEC Blocks 5x Leveraged Crypto ETFs in Sweeping Crackdown – Are High-Risk Funds Dead? appeared first on Cryptonews.

• Grayscale has launched the first US spot LINK ETF today.
• HYPE rallies after Sonnet shareholders authorize Hyperliquid DAT’s merger.
• ASTER gains more than 13% on a new collaboration with WLFI.

Cryptos rebounded on Tuesday as the value of all tokens increased by more than 6% to $3.06 trillion.

Bitcoin has reclaimed $90,000 as Ethereum trades above $3,000.

This article evaluates three altcoins, Chainlink, HYPE, and ASTER, that remained in the spotlight today for various reasons.

Grayscale’s spot Chainlink ETF goes live

Grayscale has officially converted its Chainlink Trust to an ETF today, introducing the first-ever US exchange-traded fund.

The debut has met considerable anticipation among the cryptocurrency community as many view Chainlink’s oracle infrastructure as crucial to tokenized real-world assets (RWA) and decentralized finance (DeFi).

Commenting on GLINK’s debut, Grayscale’s ETF official Inkoo Kand said:

Chainlink’s decentralized oracle network is setting the market standard for verifiable data and cross-chain connectivity that underpins tokenization and DeFi across public blockchains. With GLINK, investors can gain exposure to this foundational infrastructure in the familiar ETP wrapper.

Meanwhile, GLINK will simplify institutional access to Chainlink, allowing traditional investors to interact with crypto without directly handling the token.

LINK reacted positively to the ETF news, gaining more than 12% to trade at $13.32.

HYPE gains 10% after key milestone

HYPE soared more than 10% over the past 24 hours after Sonnet confirmed a crucial structural breakthrough.

According to today’s, December 2, press release, the company’s shareholders have approved the decision to introduce Hyperliquid Decentralized Autonomous Treasury (DAT).

Sonnet BioTherapeutics Holdings, Inc. Announces Stockholder Approval of Proposed Business Combination with Hyperliquid Strategies Inchttps://t.co/tzF9O6EgSM $SONN pic.twitter.com/cOT6JSp2ai

— Sonnet Bio (@SonnetBio) December 2, 2025

The plan involves Sonnet merging with Rorschach I LLC to form a unified entity called Hyperliquid Strategies.

Most importantly, the new firm plans to raise $1 billion to buy HYPE.

The massive bet signals unwavering institutional trust in the altcoin.

HYPE is hovering at $33.03 after gaining over 10% within the past 24 hours.

ASTER rallies after WLFI alliance

Aster’s native coin also recorded impressive price actions, gaining over 13% within the last 24 hours.

The upside momentum coincided with a strategic collaboration with Donald Trump-affiliated World Liberty Financial.

Aster founder and CEO Leonard announced the alliance at the fintech and crypto conference in Dubai.

Under this agreement, the decentralized exchange will integrate WLFI’s USD1 – a move designed to enrich the stablecoin’s adoption.

The altcoin is trading above the $1 psychological level after gaining over 13% on its daily price chart.

ASTER eyes further rallies, but declining 24-hour trading volumes highlight weakness.

Meanwhile, the broader crypto market remained elevated today, recovering from sharp dips in the past few sessions.

Bitcoin has gained over 7% on its daily price chart, while Ethereum increased by 10%.

Quantitative tightening ending and renewed ETFs interest fuel the current upside momentum.

The post Altcoins today: Grayscale’s LINK ETF debuts; HYPE and ASTER soar up to 13% appeared first on CoinJournal.

Vanguard, the world’s second-largest asset manager, is opening its brokerage platform to crypto-focused ETFs and mutual funds, a sharp break from years of resistance that could pull a new wave of mainstream money toward Bitcoin, Ether and other digital assets.

Starting Tuesday, the firm will let clients trade third-party funds that primarily hold cryptocurrencies such as Bitcoin, Ether, XRP and Solana, as long as the products meet regulatory standards, Bloomberg reported.

The shift applies to Vanguard’s US brokerage platform and treats crypto funds in a similar way to other “non-core” assets like gold.

Vanguard’s Scale Brings Millions Of New Investors Closer To Bitcoin ETFs

For crypto investors, the move matters because of Vanguard’s sheer scale. The company manages about $11 trillion and serves more than 50M clients worldwide, many of whom were previously unable to buy spot Bitcoin ETFs or other crypto wrappers through their existing Vanguard accounts.

According to Bloomberg, Vanguard will begin allowing ETFs and mutual funds that primarily hold Bitcoin, Ether, XRP, Solana, and other cryptocurrencies to trade on its platform starting December 2, 2025, ending its long-standing stance against supporting crypto products. Vanguard…

— Wu Blockchain (@WuBlockchain) December 1, 2025

“Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity,” Andrew Kadjeski, head of brokerage and investments at Vanguard, told Bloomberg. “The administrative processes to service these types of funds have matured; and investor preferences continue to evolve.”

The reversal follows nearly two years of tension between Vanguard’s public skepticism and the rapid growth of spot Bitcoin ETFs.

BlackRock’s Success Challenged Vanguard’s Crypto Skeptic Position

BlackRock’s iShares Bitcoin Trust, IBIT, has become the fastest ETF in history to reach about $70B in assets, generating hundreds of millions of dollars in annual fees and proving that demand for regulated Bitcoin exposure runs deep on Wall Street.

Vanguard had repeatedly argued that Bitcoin and other tokens were too volatile and speculative for long-term portfolios, and it initially refused to let clients trade spot Bitcoin ETFs after they launched in Jan. 2024.

Former CEO Tim Buckley said at the time that a Bitcoin ETF did not belong in a typical retirement account, reinforcing the firm’s reputation as crypto-skeptical even as rivals leaned in.

Company Will Allow Regulated Crypto ETFs But Exclude Meme Tokens

Leadership has since changed. Salim Ramji, a former BlackRock executive who once ran that firm’s giant ETF business and has spoken publicly about blockchain’s potential, took over as Vanguard’s chief executive this year.

Under his watch, Vanguard is keeping its cautious stance on issuing its own products while conceding that clients want access to crypto through the same brokerage pipes they use for stocks and bonds.

Vanguard says it will list most third-party crypto ETFs and mutual funds that meet regulatory requirements, but it will exclude products tied to memecoins and still has “no plans to launch its own crypto products.” The firm stresses that it views direct crypto exposure as speculative and wants clients to understand the risks before jumping in.

“While Vanguard has no plans to launch its own crypto products, we serve millions of investors that have diverse needs and risk profiles, and we aim to provide a brokerage trading platform that gives our brokerage clients the ability to invest in products they choose,” Kadjeski said.

The post Vanguard Opens Platform to Crypto-Linked ETFs and Mutual Funds, Ending Years of Resistance appeared first on Cryptonews.

One of the world’s largest asset managers, Vanguard Group, once skeptical about providing investors with access to the crypto market, has decided to allow trading of exchange-traded funds (ETFs) and mutual funds consisting primarily of digital assets on its platform. 

Vanguard Responds To Crypto Demand

Bloomberg reported on Monday that beginning on December 2, investors will have the opportunity to trade crypto-focused ETFs and mutual funds holding select cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL). 

Vanguard’s move appears to be driven by continuous interest in cryptocurrency investment, particularly in light of President Donald Trump’s stance on digital assets, which marks a significant shift from the previous administration. 

The firm’s new policy will open access to over 50 million brokerage customers, who collectively manage more than $11 trillion in assets, allowing them to engage with regulated cryptocurrency investment products. 

Andrew Kadjeski, Vanguard’s head of brokerage and investments, remarked, “Cryptocurrency ETFs and mutual funds have been tested through periods of market volatility, performing as designed while maintaining liquidity.” 

He emphasized that the administrative systems established for managing such funds have matured, accommodating evolving investor preferences.

No Memecoins Allowed

The firm stated it will support a variety of crypto ETFs and mutual funds that comply with regulatory requirements, similar to how it approaches other non-core asset classes, such as gold.

Additionally, funds linked to memecoins, classified as higher-risk by the Securities and Exchange Commission (SEC), will not be included in this initiative. 

Kadjeski noted, “While Vanguard has no plans to launch its own crypto products, we serve millions of investors with diverse needs and risk profiles, and we aim to provide a brokerage trading platform that allows our clients to invest in choices that align with their preferences.”

Featured image from DALL-E, chart from TradingView.com 

• The company is set to launch the first US spot LINK ETF this week.
• Grayscale plans to convert its existing LINK trust into an ETF.
• LINK price remains under pressure amid broader bearishness.

The cryptocurrency market is trading in the red on Monday, with the value of all digital tokens down by 5% the past day to $2.94 trillion.

While risk-off mood dominates the landscape, Grayscale Investment is preparing to debut the first US spot Chainlink exchange-traded fund.

ETF expert Nate Gerace expects the product to arrive this week, marking a crucial milestone for Chainlink and the overall altcoin ETF sector.

Notably, Grayscale will create this ETF by converting and up-listing its existing Chainlink Trust, offering traditional investors compliant access to Chainlink.

Set to launch this week…

First spot link ETF.

Grayscale will be able to uplist/convert Chainlink private trust to ETF. pic.twitter.com/i7z0WAKKvC

— Nate Geraci (@NateGeraci) December 1, 2025

Meanwhile, this adds to the latest wave of altcoin ETF launches in the United States.

We have had multiple altcoin ETFs, including XRP and Dogecoin, since Solana, Hedera, and Litecoin kick-started the wave in late October.

Now, the first spot LINK ETF is set to debut in the United States this week, reflecting demand for these products despite the broader market turmoil.

More about the Chainlink ETF

A spot exchange-traded fund holds LINK assets instead of derivatives, offering individuals direct and regulated exposure to Chainlink as an investment vehicle.

That’s crucial in cementing Chainlink’s legitimacy among traditional investors, many of whom have ignored crypto due to the associated complexities.

Indeed, a LINK ETF alleviates the need for private keys, wallets, and off-exchange asset storage.

The fund will open Chainlink to individuals who prefer the safety of traditional retirement and brokerage accounts.

The strategic conversion

Grayscale took a notable approach, converting a private trust into an exchange-traded fund.

The strategy has crucial benefits.

First and foremost, the LINK ETF will meet an in-built investor base as trust holders access a more liquid ETF model.

Also, the approach streamlines valuation and custody as the trust already has LINK assets.

Lastly, the move eases regulatory challenges as the trust adheres to compliant standards.

LINK price outlook

Chainlink exhibits substantial selling pressure today.

It has lost more than 6% of its value after a sudden dip on the daily chart, fueled by a broader market crash.

LINK is trading at $12.16, with a 125% uptick in daily trading volume reflecting increased activity from participants, possibly reducing exposure to avoid further losses.

Sellers target the nearest support zone at $11 and $9.8 amid intensified declines.

Failure to hold $8.20 – $8.50 would catalyze deeper slides to $6.80 – $7.20.

On the other hand, bulls should reclaim and defend $13.

Steadying above $15.50 will likely trigger buyer resurgence and stable momentum.

LINK can rally to $19, then $23, and clear the path to $30.

However, prevailing conditions suggest short-term struggles before LINK establishes a decisive directional bias.

The post Grayscale to launch first US spot Chainlink ETF through Trust conversion appeared first on CoinJournal.

• Bitcoin ETFs log fifth straight day of heavy outflows.

• BlackRock’s IBIT posts record withdrawal since launch.

• Bitcoin risks further downside as sell pressure intensifies.

US-listed spot Bitcoin exchange-traded funds saw another day of significant redemptions on 18 November, marking their fifth consecutive session of outflows.

The ETFs recorded a combined $372.8 million in net withdrawals, extending a trend that began on 12 November and has now removed billions of dollars from major issuers.

The day’s outflows were driven largely by BlackRock’s iShares Bitcoin Trust (IBIT), which reported $523.2 million in redemptions — its largest single-day loss since launching in January 2024.

Small inflows into EZBC and BTC were not enough to offset broader investor selling.

Date	IBIT	FBTC	BITB	ARKB	BTCO	EZBC	BRRR	HODL	BTCW	GBTC	BTC	Total
18 Nov 2025	(523.2)	0.0	0.0	0.0	0.0	10.8	0.0	0.0	0.0	0.0	139.6	(372.8)
17 Nov 2025	(145.6)	(12.0)	(9.5)	(29.7)	0.0	0.0	0.0	(23.3)	0.0	(34.5)	0.0	(254.6)
14 Nov 2025	(463.1)	(2.1)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	(6.0)	(25.1)	(492.1)
13 Nov 2025	(256.6)	(119.9)	(47.0)	(15.7)	(30.8)	(5.7)	0.0	(8.3)	0.0	(64.5)	(318.2)	(866.7)
12 Nov 2025	(36.9)	(132.9)	0.0	(85.2)	0.0	0.0	0.0	0.0	0.0	(23.1)	0.0	(278.1)

Recent sessions have shown a similarly weak pattern, with $254.6 million exiting on 17 November, $492.1 million on 14 November, $866.7 million on 13 November, and $278.1 million on 12 November.

The sustained withdrawals reflect cooling institutional appetite despite pockets of isolated inflows.

IBIT faces heaviest pressure

According to SoSoValue data, IBIT’s $523.15 million outflow on Tuesday surpassed its previous record of $463 million set on 14 November.

The ETF has now posted five straight days of net outflows, totaling $1.43 billion.

With $72.76 billion in net assets, IBIT remains the world’s largest spot Bitcoin ETF.

Yet it has seen a negative flow trend since late October, accumulating four consecutive weeks of outflows amounting to $2.19 billion.

Across the sector, spot Bitcoin ETFs have suffered more than $3 billion in outflows so far in November, with IBIT alone accounting for nearly $2 billion of that figure.

The withdrawals have coincided with Bitcoin’s price correction, which saw the token fall below $90,000 earlier this week from its $126,080 all-time high in early October.

Bitcoin was last changing hands around $91,849, up 1.6% in the past 24 hours.

Bitcoin price tests crucial support

Bitcoin continues to trade near the $90,000 support level on Wednesday.

A daily close below that threshold could open the door to further downside, particularly as institutional outflows reinforce bearish sentiment.

The pressure has been amplified by data showing persistent selling across multiple investor cohorts.

A K33 Research report released Tuesday noted that long-term holders have been trimming positions for months, while ETF investors have accelerated their own selling in recent weeks.

K33 highlighted that Bitcoin’s recent market structure resembles prior major drawdowns.

In March 2024, the token fell 33.57% from its peak, while the tariff-driven sell-off earlier in the year resulted in a 31.95% decline. A similar correction today would place Bitcoin in the $84,000 to $86,000 range.

Analysts at K33 also warned that a resurgence of leverage in the derivatives market could act as a catalyst pushing prices toward — or even below — those levels.

 

The post Bitcoin ETF outflows accelerate as IBIT logs record withdrawals appeared first on CoinJournal.