SEC Clears the Way for 3x Leveraged Bitcoin and Ether ETPs

On October 2, the SEC approved an amendment to the Cboe BZX listing rules for six Volatility Shares products, including a 3x leveraged Bitcoin ETP and a 3x leveraged Ether ETP. These funds aim to triple the daily performance of their reference asset, before fees. However, their launch still depends on a final regulatory step.

In Brief

Six ETPs receive SEC green light

The financial products market linked to cryptos continues to evolve. However, spot Bitcoin ETFs have just recorded their first outflow after nine days of inflows, despite $3.1 billion raised during that period.

In this context, the SEC approved on October 2 an amendment to the Cboe BZX listing rules. This decision concerns six products from the VS Trust, linked to Bitcoin, Ether, gold, silver, crude oil, and natural gas.

Cboe BZX filed its application on August 10, before publishing it for comments on August 19. Since these leveraged products do not follow the usual listing procedure for commodity trusts, the SEC reviewed each file separately.