The US Securities and Exchange Commission has approved a rule change allowing the Cboe BZX Exchange to list six triple-leveraged exchange-traded products from Volatility Shares. Among these are a 3x Bitcoin ETF and a 3x Ether ETF, which aim to provide three times the daily performance of their underlying futures benchmarks.
This approval, detailed in SEC Release 34-106577, marks the first time a US regulator has permitted crypto products with this level of leverage. The funds are structured under the Securities Act of 1933, which exempts them from the leverage limits typically imposed by the Investment Company Act of 1940.
Despite the listing approval, the ETFs cannot yet begin trading. The SEC must first declare the Form S-1 registration statements effective, and no timeline has been established for this review. The proposed tickers for the new funds are BITH and ETHK.
Volatility Shares currently manages over $1.2 billion in assets through its existing 2x Bitcoin ETF, which trades under the ticker BITX. The new 3x products rely on daily rebalancing, which may lead to volatility decay over longer holding periods, making them primarily suited for short-term trading.
