SEC approves 3x leveraged Bitcoin and Ether ETPs for US listing

On October 2, 2026, the US Securities and Exchange Commission approved a rule change allowing Volatility Shares LLC to list six 3x leveraged exchange-traded products, marking the first US approval of triple-leveraged ETPs for Bitcoin and Ether. The futures-based products, which also target gold, silver, crude oil, and natural gas, reset leverage daily, posing compounding risks in volatile markets. Trading remains pending until a separate Form S-1 registration statement becomes effective.

Cboe BZX rule change details

• ▪The Cboe BZX Exchange rule change approved by the SEC on October 2, 2026 addresses limitations on leveraged commodity-based trust shares, the regulatory category for the Volatility Shares Trust products
• ▪Cboe BZX Exchange filed a proposed rule change for six 3x leveraged exchange-traded products on August 10, 2026, and the US Securities and Exchange Commission published notice of the proposal on August 14, 2026
• ▪On October 2, 2026, the US Securities and Exchange Commission approved Cboe BZX Exchange rule change Release No. 34-106577, allowing Volatility Shares LLC to list six 3x leveraged Volatility Shares Trust exchange-traded products

Significance for cryptocurrency regulation

• ▪The October 2, 2026 decision marks the first US approval of triple-leveraged exchange-traded products linked to Bitcoin and Ether
• ▪The US Securities and Exchange Commission's October 2, 2026 approval packaged Bitcoin and Ether in the same regulatory action as traditional commodities like gold, silver, crude oil, and natural gas

Structure of the approved products

• ▪The six Volatility Shares Trust products approved by the SEC on October 2, 2026 do not hold actual assets but instead gain exposure through futures contracts
• ▪All six Volatility Shares Trust products approved on October 2, 2026 reset their leverage daily, meaning their 3x leverage target applies one day at a time

Debatable claims

• ▪The SEC's shifting stance on crypto products undermines its regulatory credibility
• ▪The SEC is right to treat Bitcoin and Ether as traditional commodities
• ▪Futures-based ETPs are an ineffective way to gain exposure to cryptocurrency
• ▪The SEC's approval of 3x leveraged crypto ETPs poses unacceptable risks to retail investors