SEC opens door to 3x Bitcoin and Ethereum funds – Here’s the catch!

The United States took another step toward allowing 3x daily leveraged exchange-traded products tied to crypto and commodities.

The SEC approved Cboe BZX’s proposed rule change through the Rule 19b-4 process, clearing a listing hurdle for these products.

They included 3x Bitcoin [BTC] (BITH), 3x Ethereum [ETH] (ETHK), 3x Gold (GDLU), and 3x Silver (SLVK). The lineup also included 3x Crude Oil (OILY) and 3x Natural Gas (NATX).

Needless to say, this would give investors a regulated exchange-traded vehicle to obtain amplified daily exposure without directly borrowing money or using a crypto derivatives account.

However, because the leverage resets every day, returns over several days can differ significantly.

The Gold ETF puzzle

This comes on the heels of the SPDR Gold Shares (GLD)’s market price rising sharply. However, the ETF’s underlying gold holdings, measured in tonnes, have not increased at the same pace and have even moved lower at certain points.

This suggests that GLD’s price gains are not being driven purely by fresh purchases of physical gold by the ETF.

Then there is also the regional difference in ETF flows wherein European gold ETFs across the UK, France, and Germany have attracted roughly 125 tonnes of cumulative inflows in 2026 through the 30th of September, compared with only around 15 tonnes for U.S. gold ETFs.