SEC Approves 3x Ethereum ETF Amid Weakening Demand
The U.S. Securities and Exchange Commission (SEC) approved Cboe BZX’s proposal for a Volatility Shares 3x Ether ETF on October 2, alongside five similar products. The approval allows these funds to be listed on Cboe BZX but does not permit initial trading until the S-1 registration process is completed.
The 3x Ether ETF will amplify all positive and negative price movements in Ether (ETH) futures by up to three times. However, as an unleveraged daily reset product, volatile swings can cause returns to diverge sharply from ETH’s longer-term performance. Futures-based leveraged products also carry rollover costs and may experience tracking errors compared to Spot ETH.
Despite the approval, Ethereum ETF demand has weakened. Data recorded outflows for four consecutive days, accelerating from $59.58 million on September 30 to $37.36 million on October 2. This removed $155 million after September’s inflow streak, indicating that investors have not shifted toward ETH exposure despite the leveraged route. ETF assets also slipped from $17.92 billion on September 22 to $17.46 billion, shedding $460 million.
Despite the outflows, ETH’s price structure remains above $2,700, with buyers absorbing selling near the middle of a broader range. After nearing $2,777 on October 2, the price retraced toward the $2,625 support zone before recovering. The Relative Strength Index (RSI) near 52 indicates that momentum has cooled without becoming bearish, keeping the range intact but building pressure on both sides.