The US Securities and Exchange Commission has approved the first 3x leveraged Bitcoin and Ethereum exchange-traded funds in the country. Now Volatility Shares will be able to move ahead with products designed to target three times the daily performance of Bitcoin and Ether futures.
The SEC approved a Cboe BZX rule change on October 2 covering six triple-leveraged products linked to Bitcoin, Ether, gold, silver, crude oil and natural gas. Now, the crypto funds will not hold Bitcoin or Ethereum directly; they will use regulated futures contracts to try to deliver three times the daily move of the relevant benchmark. However, the products will start trading only after their registration statements become effective.
Notably, the new Bitcoin and Ethereum products are different from ordinary spot crypto ETFs. Instead of buying and holding BTC or ETH, the funds will use futures contracts, including contracts linked to the Chicago Mercantile Exchange, to get their exposure.
JUST IN: 🇺🇸 SEC approves first-ever 3x leveraged Bitcoin and Ethereum ETFs.
• The SEC approved Cboe BZX to list six new Volatility Shares ETFs, including 3x Bitcoin and Ether ETFs, along with 3x gold, silver, crude oil, and natural gas ETFs.
• This is the first US approval of 3x leveraged $BTC and $ETH exchange-traded products.
• These are based on CME futures contracts, not spot Bitcoin or Ethereum holdings.
— Watcher.Guru (@WatcherGuru) October 5, 2026
The “3x” part means the funds will try to produce three times the daily movement of their underlying benchmark, before fees and other costs. So, if the benchmark rises 1% in a day, the fund could aim for a gain of about 3%. But if the benchmark falls 1%, the fund could lose about 3%.
That does not mean investors will always get three times Bitcoin or Ethereum’s performance over several days. Leveraged ETFs reset their exposure every day. Because of this daily reset, frequent price movements can have a big effect on the final return.
For example, a market that moves sharply up and down can produce a very different result from simply multiplying the asset’s overall price change by three. Daily rebalancing can also reduce returns when markets are volatile.
The SEC approval itself does not mean investors can buy the new products immediately. Volatility Shares still has to wait for its Form S-1 registration statements to become effective. There is currently no confirmed launch date.
Volatility Shares has already offered leveraged crypto products, including 2x Bitcoin and 2x Ether funds. The latest approval takes that approach a step further by allowing products targeting three times the daily move.
The development comes at a time when US regulators are making several changes to their approach to digital assets. The SEC has recently issued guidance covering areas such as staking-related tokens and other crypto arrangements. It has also been looking at rules covering crypto custody and tokenized securities.
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