SEC Approves 3x Leveraged Bitcoin and Ether ETPs for Cboe
The U.S. Securities and Exchange Commission (SEC) has approved the listing of two new exchange-traded products (ETPs) on the Cboe exchange. These ETPs will offer 3x leveraged exposure to Bitcoin and Ether, using futures contracts and resetting leverage on a daily basis.
The proposed tickers for these ETPs are BITH for Bitcoin and ETHK for Ether. The daily reset of leverage means that longer-term holders could face compounding losses, a potential risk highlighted in the announcement.
The listing of these ETPs provides investors with a new way to gain leveraged exposure to the cryptocurrency market. However, the daily reset mechanism could amplify both gains and losses, making them more suitable for short-term traders rather than long-term investors.