SEC approves first 3x bitcoin and ether funds: What it means

00:00 Speaker A

SEC approves a 3X fix for Bitcoin and ether traders who miss the wild swings.

00:07 Speaker A

Uh, 1X leverage, 2X leverage, for babies. We need to get up to 3X leverage. So like I said before,

00:16 Speaker A

we didn't get the clarity act, but we're getting a lot of rule making rule making and decisions from the SEC and the CFTC. Of course, we've talked about Red Crypto from the CS, the SEC. We talked about the innovation exemption and of course OKX and ISIS move yesterday.

00:32 Speaker A

Well, now in the ETF space, the SEC has approved 3X leverage. So, this is uh the CBOE's request to list the first US products with three times Bitcoin and Ether daily returns. Until now, US crypto funds were capped at a low low 2X leverage.

00:49 Speaker A

This will be operated by volatility shares that will use regulated Bitcoin and ether futures, not actual Bitcoin or Ethereum. To be clear, these are not trading yet.

00:58 Speaker A

Uh, so they target three times a daily move, not three times Bitcoin's long-term performance, which is really, really important because with products like these, the leverage resets every day, which creates massive volatility decay. There will definitely be people who buy these, thinking that they're buying an ETF that gives them 3X exposure to Bitcoin over the long term, and then Bitcoin's going to go up massively and they're going to wonder why they're broke and their account is at zero because that is not what these work. These are trading