The U.S. Securities and Exchange Commission has approved a Cboe BZX proposal to list 3x leveraged Bitcoin and Ether exchange-traded products, clearing the way for some of the most highly leveraged crypto products yet approved for U.S. exchange trading.
The SEC issued its approval on October 2, covering six products sponsored by Volatility Shares LLC. The lineup includes the 3x Bitcoin ETF and 3x Ether ETF, alongside leveraged products tied to gold, silver, crude oil and natural gas.
All six are series of VS Trust. Despite using “ETF” in their names, the vehicles are legally structured as commodity-based exchange-traded products rather than investment companies regulated under the Investment Company Act of 1940.
Cboe BZX initially submitted the listing proposal on August 10, with the filing subsequently published for public comment on August 19.
The authorization clears the exchange-listing rule change, although additional registration and operational conditions must be satisfied before trading begins.
Bitcoin Fund Targets Triple Daily Performance
The 3x Bitcoin product is designed to deliver approximately three times the daily performance of its Bitcoin futures benchmark, before fees and expenses.
That means if the underlying benchmark rises 1% during a trading day, the fund would target approximately a 3% gain. Conversely, a 1% decline would translate into a targeted 3% daily loss.
The product will primarily obtain its exposure through first- and second-month Bitcoin futures contracts, rather than holding Bitcoin directly. Cash and cash equivalents will serve as collateral supporting those derivatives positions.
Its benchmark gradually rolls expiring futures into later contracts over five days, shifting approximately 20% of the relevant exposure each day.
Volatility Shares already operates leveraged crypto products. Its 2x Bitcoin Strategy ETF, BITX, launched in June 2023, while the company expanded into XRP futures products in 2025.
Triple Exposure Also Magnifies Losses
The leverage creates considerably greater risk than ordinary Bitcoin exposure.
Because the fund targets three times the benchmark's daily movement, losses are amplified alongside gains. Furthermore, the Bitcoin futures benchmark can perform differently from Bitcoin's spot market price.
Another important factor is daily compounding.
Leveraged ETPs generally reset their exposure each trading day. Consequently, holding one for several days does not necessarily produce three times the cumulative return of its benchmark over the same period.
FINRA warns that leveraged products can produce returns that differ significantly from their stated daily multiple over longer periods, particularly when markets experience substantial volatility.
For example, repeated gains and losses are applied to a changing investment balance rather than the original amount. Higher leverage can magnify that compounding effect.
Funds Can Use Alternative Instruments
The products also have mechanisms for maintaining exposure when their preferred futures contracts become difficult or impossible to use.
If benchmark futures become unavailable, or if factors such as position limits and increased margin requirements restrict their use, the 3x strategies may turn to later-dated futures, options and related exchange-traded instruments.
These alternatives can introduce additional differences between the fund's performance and the underlying benchmark.
The SEC's approval therefore does not mean investors receive a straightforward three-times multiple of Bitcoin or Ether's spot-market performance.
Instead, the products provide leveraged daily exposure to futures-based benchmarks, with derivatives pricing, daily resets, fees and market volatility all potentially affecting returns.
Separate SEC Approval Was Required
The six products required individual SEC consideration because their 3x leveraged objectives prevented them from qualifying through the standard listing process available to certain commodity-based trust shares.
The SEC approved broader generic listing standards for qualifying commodity-based trust shares in September 2025, allowing eligible products to reach exchanges without separate rule-change filings in every case.
These leveraged products fell outside that standard route, requiring Cboe BZX to seek specific authorization.
The approval also preserves existing exchange surveillance, investor-protection and trading-halt requirements. Trading can be halted under specified circumstances, including when daily valuation information is not simultaneously available to market participants.
Broker recommendations remain subject to applicable obligations requiring consideration of factors including an investor's circumstances, risks, rewards and costs.
Before trading can begin, each product must also satisfy applicable registration and listing requirements. Among other conditions, each must have at least 100,000 shares outstanding when exchange trading starts, while the sponsor must calculate net asset value per share every day.
The decision marks another expansion of regulated U.S. crypto investment products, this time moving beyond conventional and 2x exposure into 3x daily leveraged Bitcoin and Ether strategies.
