SEC Gives Green Light for Triple-Leverage Bitcoin and Ethereum ETPs
The US Securities and Exchange Commission (SEC) has given its approval for Volatility Shares to list six new exchange-traded products (ETPs) on Bitcoin, Ethereum, gold, silver, oil, and natural gas. These ETPs will offer triple daily exposure, meaning if the underlying asset rises or falls by 1%, the product's value should increase or decrease by about 3%. This development comes as ETF demand in the US continues to surge, with investments exceeding previous records.
The new Volatility Shares lineup includes instruments linked to Bitcoin and Ethereum, as well as gold, silver, crude oil, and natural gas. However, unlike traditional ETPs that directly hold assets, these products will use regulated futures contracts instead. This means the cryptocurrency instruments will track futures traded on CME Group.
Bloomberg Intelligence analyst Eric Balchunas described the SEC's decision as a 'major win' for Volatility Shares and noted the changing approach of US regulators towards cryptocurrency exchange-traded products in recent years.