Bitcoin, Ether, Oil, Gold: Volatility Shares Cracks the SEC Code to Bring 3x ETFs Back

The U.S. Securities and Exchange Commission (SEC) has approved a Cboe BZX Exchange rule change that clears the way for six triple-leveraged exchange-traded products from Volatility Shares, including proposed 3x Bitcoin and Ether ETFs.

The Oct. 2 order covers six products targeting three times the daily move in Bitcoin, Ether, gold, silver, crude oil and natural gas. Bloomberg ETF analyst Eric Balchunas called the decision a "big win" for Volatility Shares.

The approval is notable because it comes less than a year after the SEC raised serious concerns about highly leveraged ETFs.

A Regulatory Workaround for 3x ETFs

The new products will be structured as commodity-based trust shares under the Securities Act of 1933, rather than conventional ETFs registered under the Investment Company Act of 1940.

That distinction is crucial. Cboe’s existing generic listing standards allow certain commodity trusts to list without individual rule changes, but exclude products seeking leveraged or inverse exposure. Volatility Shares therefore needed a separate Cboe rule change, which the SEC has now approved.

The funds are expected to use first- and second-month futures contracts, with cash and cash equivalents serving as collateral. The SEC order does not specify when trading will begin.