Such has been the case for Volatility Shares, which has been preparing a range of ETFs with 3x and 5x leverage. “The SEC has asked us, and all the other ETF issuers, to not let those filings go effective,” Volatility Shares CEO Justin Young told ETF Upside, noting that the agency “is quite adamant about issuers not launching those highly leveraged ETFs in the ’40 Act.” “I don’t think it’s about restricting ETFs or concepts of ETFs that most people would consider to be risky or downright speculative,” he said. While less than two dozen leveraged or inverse ETFs bit the dust last year, more than 70 have closed so far this year, Sotiroff said. If at First You Don’t 6c’d: Despite the pushback on highly leveraged funds, Young said the ETFs Volatility Shares filed comply with the SEC’s Rule 6c-11, which allows issuers to bring products to market without getting exemptions.