SEC Clears Path for 3x Leverage ETPs on Bitcoin and Ether

The U.S. Securities and Exchange Commission (SEC) has approved a rule change for Cboe BZX, allowing the listing of six new exchange-traded products (ETPs). These ETPs will track the daily performance of Bitcoin and Ether, as well as other commodities such as gold, silver, crude oil, and natural gas.

Each of these ETPs aims to provide a daily return equal to three times its underlying asset's performance. This means that if Bitcoin or Ether increases in value by 1% on any given day, the ETP will aim to increase by 3%. However, it's worth noting that this leverage can also work against investors, as daily resets of leverage can erode returns even when underlying prices remain flat.

The approval was granted under Release No. 34-106577 and follows a proposed rule change submitted by Cboe BZX. The listing is pending an effective Form S-1 registration, with no launch date disclosed at this time.