In wake of crypto’s leverage wipeout, SEC approves ‘SUI-on-steroids’ ETF

The US Securities and Exchange Commission (SEC) approved a 2x leveraged exchange-traded fund (ETF) tied to the SUI token from 21Shares, trading as TXXS on the Nasdaq. This fund aims to deliver twice the daily return of SUI, offering investors amplified exposure through derivatives like swaps, rather than direct token holding. This approval comes despite recent regulatory caution regarding high leverage in crypto, following a record $19 billion leverage-driven sell-off in October that amplified price swings. Leverage plays a significantly larger role in crypto markets compared to traditional finance due to the prevalence of highly leveraged perpetual futures contracts on exchanges.

(Source：Cointelegraph)