SEC Approves First 3x Leveraged Bitcoin and Ether ETPs, but Trading Awaits S-1 Clearance

The US Securities and Exchange Commission issued Release No. 34-106577 on October 2, approving a rule change for six 3x leveraged Volatility Shares exchange-traded products. The funds gain their market exposure strictly through futures contracts rather than holding actual Bitcoin or Ether. Because the 3x target applies dynamically on a daily basis, compounding and contract roll costs can severely degrade long-term performance even if the underlying asset finishes a stretch completely flat. Actual trading on the Cboe BZX Exchange cannot begin until a separate Form S-1 registration statement goes into effect under the Securities Act of 1933. The regulatory packaging quietly bundles Bitcoin and Ether in the exact same approval action as traditional physical commodities like gold, silver, crude oil, and natural gas.