If you thought 2× leveraged exchange-traded funds (ETFs) were wild, buckle up - because Wall Street’s about to crank things to a whole new level.
A firm called Volatility Shares just filed to launch 27 new ETFs that could give investors five times the daily move of a single stock or even a cryptocurrency like Bitcoin or Ethereum. That’s right - 5× leverage. If Tesla jumps 2% in a day, this ETF would aim for a 10% move. But if Tesla drops 2%? You’re looking at a 10% hit.
Now, before we all get visions of instant riches, let’s remember: leverage cuts both ways. Fast gains can just as easily become fast losses.
The SEC, a Shutdown, and the Race for Approval
Here’s where it gets even more interesting. The SEC is partially shut down due to government funding issues, meaning the normal review process for new ETFs is… well, stuck in limbo. But in some cases, filings can automatically go into effect if the agency doesn’t act in time.
So, these 5× ETFs could sneak through during the shutdown. Whether that’s good or bad depends on your appetite for risk.
A Sign of the Times
To me, this is just another sign of how far the market’s evolved - and how fast investors chase new ways to amplify returns. We’ve gone from index funds… to 2× ETFs… to crypto leverage… and now potentially 5× single-stock funds.
It’s innovation - but it’s also speculation.
And it speaks to an important trend I’ve been talking about: financial engineering is moving faster than investor education.
Morningstar found that over half of all leveraged ETFs have already shut down, and nearly one in five lost 98% or more of their value. That’s a painful lesson in how leverage works when the market turns against you.
Trade War Profits Are Back
Breaking news: China just walked away from key U.S. trade talks —
and markets are reacting fast.
Most investors see chaos… I see opportunity.
Because history shows every tariff cycle creates massive winners —
the companies positioned on the right side of the trade war.
In my latest video, I reveal the top “Tariff War” stocks set to surge as America
doubles down on manufacturing, energy, and supply-chain independence.
Be Smart, Not Fearful
I’m not here to bash these new ETFs. For active traders who know what they’re doing, leveraged funds can be powerful short-term tools. But for long-term investors - the kind building wealth through megatrends and compounding - they’re like playing with fire.
Use them as tools, not toys.
Know the risks, respect the math, and don’t let greed drive your trades.
Because when Wall Street starts offering 5× exposure on single stocks and crypto, it’s not just innovation - it’s a reminder that discipline and education matter more than ever.
In Summary…
Leverage multiplies emotions as much as returns. Don’t let short-term excitement wreck long-term goals.
If you need 5× leverage to make your portfolio work, you’re investing in the wrong trends.
True wealth comes from conviction and time, not speed. Catch the right megatrend early - and let it do the heavy lifting.
Here’s to the future,
Matt McCall
Editor, Market Insights
