SEC approves 3x leveraged ETPs for Bitcoin, Eth...

The U.S. Securities and Exchange Commission has approved 3x leveraged exchange-traded products tied to Bitcoin and Ether, according to a report originally published by Pluang. The approval covers products designed to provide amplified exposure to the two largest crypto assets by market value.

Exchange-traded products, or ETPs, are securities that trade on exchanges and can provide investors exposure to an underlying asset or strategy without requiring direct ownership of that asset. Bitcoin is the largest cryptocurrency, while Ether is the native asset of the Ethereum network.

A 3x leveraged product generally seeks to magnify the daily movement of its reference asset or index. That structure can increase potential gains when markets move in the intended direction, but it can also magnify losses when prices move against the product.

The SEC is the main U.S. regulator for securities markets. Its approval of leveraged Bitcoin and Ether ETPs adds another regulated product category connected to digital assets, alongside existing spot and futures-based crypto investment vehicles.