SEC Approves First 3x Leveraged Bitcoin and Ethereum ETFs in the US

The SEC has approved the first 3x leveraged Bitcoin and Ethereum ETFs in the United States, paving the way for more highly leveraged bitcoin trading products linked to regulated futures markets.

SEC Clears Six 3x Leveraged ETFs

The U.S. Securities and Exchange Commission approved a Cboe BZX rule change on October 2 that allows Volatility Shares to list six triple-leveraged exchange-traded products. The lineup includes 3x Bitcoin, 3x Ether, 3x gold, 3x silver, 3x crude oil and 3x natural gas funds.

The Bitcoin and Ethereum ETFs will not hold BTC or ETH directly. Instead, the products will use regulated futures contracts, including CME-linked contracts, to target three times the daily move of their respective benchmarks.

The tracked futures benchmark could thus generate approximately 3% increase before fees and other costs for a 1% daily gain. A 1% run could result in a 3% loss, and losses would be more significant if markets were moving against the position.

Bitcoin and Ethereum ETFs Still Await Launch

The SEC approval does not mean the funds can begin trading immediately. Volatility Shares still needs its Form S-1 registration statements to become effective before brokers can offer the new ETFs to investors.