SEC clears Cboe BZX rule change for 3x Bitcoin and Ether funds
The SEC has approved a Cboe BZX Exchange rule change allowing the listing of six 3x leveraged commodity and crypto funds sponsored by Volatility Shares, though trading awaits effective registration.
On Oct. 2, 2026, the U.S. Securities and Exchange Commission approved a proposed rule change by Cboe BZX Exchange to list and trade six triple-leveraged funds from VS Trust, sponsored and managed by Volatility Shares. The approved products include 3x Bitcoin and 3x Ether funds, alongside products targeting three times the daily returns of gold, silver, crude oil, and natural gas futures. Bloomberg ETF analyst Eric Balchunas called the regulatory decision a big win for Volatility Shares.[2][3][7][8]
The funds are structured as Commodity-Based Trust Shares registered under the Securities Act of 1933 rather than the Investment Company Act of 1940. Cboe BZX filed the standalone rule change on Aug. 10, 2026, because its generic commodity-trust listing standards exclude instruments that target multiples or inverses of a benchmark. The crypto funds will not hold spot Bitcoin or Ether; instead, each targets 300% of the daily performance of futures-based benchmarks by holding first- and second-month CME futures contracts backed by cash and cash equivalents.[2][5][7][8]
While the exchange rule change has been approved under SEC Release No. 34-106577, the order does not establish a launch date, and trading cannot begin until the funds' registration statements are declared effective. In an Aug. 17 preliminary prospectus marked subject to completion, VS Trust listed proposed ticker symbols BITH for the Bitcoin fund and ETHK for the Ether fund. Because the funds reset daily, compounding can cause multi-day performance to diverge significantly from three times the underlying benchmark's cumulative return, amplifying potential losses as well as gains.[1][2][4][6][7][8]
Key facts
- On Oct. 2, 2026, the SEC approved Cboe BZX Exchange's rule change to list six 3x leveraged funds from VS Trust under Release No. 34-106577.
- The approval covers 3x Bitcoin and 3x Ether funds, alongside 3x products for gold, silver, crude oil, and natural gas, all sponsored and managed by Volatility Shares.
- The funds are structured as Commodity-Based Trust Shares under the Securities Act of 1933 rather than under the Investment Company Act of 1940.
- The crypto products hold first- and second-month CME futures contracts backed by cash collateral rather than spot cryptocurrency holdings.
- Cboe BZX filed the standalone rule change on Aug. 10, 2026, because its generic listing standards shut out products tracking multiples of a benchmark.
- Trading cannot begin until the SEC declares the funds' registration statements effective.
- VS Trust's preliminary prospectus proposed ticker symbols BITH for the Bitcoin fund and ETHK for the Ether fund, marked subject to completion.
Sources · 8 sources
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Analytics Insight@analyticsinmePost on X ·
𝐒𝐄𝐂 𝐂𝐥𝐞𝐚𝐫𝐬 3𝐱 𝐁𝐢𝐭𝐜𝐨𝐢𝐧 & 𝐄𝐭𝐡𝐞𝐫 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬 𝐚𝐬 𝐃𝐚𝐢𝐥𝐲 𝐑𝐢𝐬𝐤𝐬 𝐆𝐫𝐨𝐰 The SEC has cleared 3x Bitcoin ETF and Ether products tied to futures, but daily resets and compounding can produce unexpected results across several sessions. Trading has not yet begun. #Bitcoin #Ethereum #SEC #CryptoETF #BitcoinETF #CryptoMarket #analyticsinsight #analyticsinsightmagazine Read More 👇 https://t.co/NPFjpRfh0W
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Eric Balchunas@EricBalchunasPost on X ·
Looks like SEC just approved a 3x Bitcoin ETP as well as 3x Ether, Gold, Silver, Oil, Nat Gas under 33 Act. Wow. Big win for VolatilityShares. https://t.co/MpZuVafHF7
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
Bloomberg Analyst: U.S. SEC Approves 3x Leveraged Bitcoin, Ether and Other ETPs for Listing and Trading Bloomberg ETF analyst Eric Balchunas said the U.S. SEC has approved 3x leveraged Bitcoin, Ether, gold, silver, crude oil and natural gas ETPs under the Securities Act of 1933, calling it a major win for Volatility Shares. The document he shared shows approval of Cboe BZX's proposed rule change to list and trade the six products.
Open source - CO
CoinDesk@CoinDeskPost on X ·
NEW: The SEC approves 3x leveraged $BTC and $ETH ETFs, a first for U.S. crypto funds previously capped at 2x leverage, though trading cannot begin until the SEC declares the registration statement effective. https://t.co/kyM6QoFsM7
Open source - WG
Watcher.Guru@WatcherGuruPost on X ·
JUST IN: 🇺🇸 SEC approves first-ever 3x leveraged Bitcoin and Ethereum ETFs. • The SEC approved Cboe BZX to list six new Volatility Shares ETFs, including 3x Bitcoin and Ether ETFs, along with 3x gold, silver, crude oil, and natural gas ETFs. • This is the first US approval of 3x leveraged $BTC and $ETH exchange-traded products. • These are based on CME futures contracts, not spot Bitcoin or Ethereum holdings.
Open source - CP
Crypto Patel@CryptoPatelPost on X ·
SEC APPROVES 3X LEVERAGED BITCOIN & ETHEREUM ETFs! The U.S. SEC has approved a Cboe BZX rule change allowing six 3X leveraged ETPs linked to Bitcoin, Ethereum, Gold, Silver, Crude Oil and Natural Gas futures. 🔹 3X Daily Leveraged $BTC & $ETH Exposure 🔹 Expanded Regulated Crypto Investment Products 🔹 Trading Pending Registration Effectiveness Source: SEC Official Order | Release No. 34-106577
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CryptoSlateArticle ·
3x Bitcoin and Ether futures funds clear SEC listing hurdle On Oct. 2, the SEC approved the Cboe BZX exchange’s listing proposal for VS Trust’s 3x Bitcoin ETF and 3x Ether ETF. The decision clears an exchange-rule hurdle for products sponsored by Volatility Shares that seek amplified daily crypto futures exposure. The order covers six funds, including products tied to gold, silver, crude oil and natural gas. It advances the proposal CryptoSlate covered in August , when the exchange was still seeking permission. For brokerage investors, the change opens a listing path for a higher daily leverage target. Cboe’s generic commodity-trust standards exclude products that seek specified multiples of a benchmark, so these funds needed individual approval. Their other initial and continuing listing requirements still apply. Related Reading Cboe pushes for 3x Bitcoin and Ethereum ETFs after 2x crypto funds suffer losses of up to 96% VS Trust’s Aug. 17 preliminary prospectus lists BITH for the Bitcoin product and ETHK for the Ether product. Those are proposed symbols in a filing marked subject to completion. The prospectus says securities cannot be sold until registration becomes effective. The October order approves the exchange’s rule change; it does not establish that registration is effective or that trading has begun. Registration effectiveness and a first trading date remain unconfirmed as of Oct. 4. Investors therefore cannot treat this decision alone as confirmation that the products are available through their brokers. Although “ETF” appears in their names, the order classifies the funds as exchange-traded products, or ETPs, structured as Commodity-Based Trust Shares. They do not have the investor protections associated with funds registered under the Investment Company Act of 1940. Related Reading The SEC is reviewing automatic filing pathways after exotic crypto and event-linked ETF proposals flooded the market What the daily 3x target means Each crypto product seeks three times its benchmark’s daily performance before fees and expenses. The benchmarks measure portfolios of first- and second-month futures contracts, with the funds using futures alongside cash collateral. That makes the reference point a futures portfolio’s daily return, rather than the spot price alone. Related Reading Leveraged funds’ Bitcoin futures shorts fall by 5,300 BTC-equivalent as longs shrink The preliminary prospectus defines a day as the interval between successive net asset value calculations. Under normal circumstances, the funds seek to rebalance daily. Each day’s result then compounds from a changed asset value, so the sequence of gains and losses matters to a longer holding period. The SEC’s investor bulletin warns that daily leveraged products can depart substantially from their stated multiple over weeks or months, especially in volatile markets. The prospectus likewise warns that longer-period returns may differ in magnitude and even direction. A 3x daily objective therefore does not promise triple Bitcoin or Ether’s cumulative return. Leverage also amplifies losses. SEC staff specifically warn that ETFs using leveraged Bitcoin-futures strategies increase volatility and can expose investors to significant, sudden losses. The post 3x Bitcoin and Ether futures funds clear SEC listing hurdle appeared first on CryptoSlate .
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UnchainedArticle ·
SEC Clears Cboe to List Volatility Shares’ 3x Bitcoin and Ether Funds The U.S. Securities and Exchange Commission approved a Cboe BZX Exchange rule change on Oct. 2 that clears the exchange to list six triple-leveraged products from Volatility Shares , among them a 3x Bitcoin ETF and a 3x Ether ETF . The remaining four aim for three times the daily move in gold, silver, crude oil and natural gas. All six belong to the VS Trust, which Volatility Shares sponsors and manages. “Looks like SEC just approved a 3x Bitcoin ETP as well as 3x Ether, Gold, Silver, Oil, Nat Gas under 33 Act. Wow. Big win for VolatilityShares,” Bloomberg ETF analyst Eric Balchunas wrote on X on Friday evening. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . Why Cboe Needed a Rule Change The funds carry “ETF” in their names, but the SEC order classifies them as commodity-based trust shares . Their shares are registered under the Securities Act of 1933, and they fall outside the Investment Company Act of 1940 that governs conventional ETFs. Cboe already has generic listing standards that let commodity trusts list without a separate filing. Those standards shut out any product that targets a multiple or an inverse of a benchmark, so Cboe had to submit a standalone rule change , which it filed on Aug. 10. The SEC received no public comments, and its Division of Trading and Markets approved the proposal under delegated authority. Each fund will hold first- and second-month futures contracts on its commodity, with cash and cash equivalents posted as collateral. The order does not set a launch date. The 2x Limit for 1940 Act Funds The trust structure matters because of how the SEC has handled triple leverage in 1940 Act funds. In a Dec. 2, 2025 letter to Direxion , staff in the SEC’s Division of Investment Management said they would not substantively review Direxion’s filings for funds seeking more than 200% leveraged exposure until the firm resolved concerns under Rule 18f-4, which caps a fund’s value-at-risk at twice that of an unleveraged reference portfolio. Direxion’s flagged filings included proposed 3x bitcoin and ether funds. Volatility Shares already offers 2x bitcoin and ether products under the tickers BITX and ETHU , which the order lists among leveraged products trading on U.S. exchanges today. The order also notes that broker-dealers recommending the new funds remain bound by Regulation Best Interest and by FINRA’s stricter sales-practice and margin requirements for leveraged securities. Related Listen: The Chopping Block: Bitget’s 388 Million Dollar Hack, Kalshi’s Cooked Perps Volume, and Agentic Bank Runs The post SEC Clears Cboe to List Volatility Shares’ 3x Bitcoin and Ether Funds appeared first on Unchained .
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