SEC Approves 3x Leveraged Bitcoin and Ethereum Funds for Trading
The U.S. Securities and Exchange Commission (SEC) approved a rule change on October 2 that allows the Cboe exchange to list six leveraged funds. These funds are designed to deliver triple the daily price movements of Bitcoin, Ethereum, gold, silver, crude oil, and natural gas. The products come from Volatility Shares, the firm behind existing 2x Bitcoin and Ethereum ETFs. They will trade on Cboe's BZX Exchange like regular stocks.
The leveraged funds aim to amplify returns and losses by three times the daily performance of their underlying assets. For example, if Bitcoin futures rise 2% in a day, the fund targets a 6% gain. However, the SEC and FINRA have warned that these funds reset daily, so over longer periods, returns can deviate significantly from the triple target.
The SEC required a vote to approve these funds because Cboe's fast-track listing rules for commodity funds exclude products that chase a multiple of an asset's return. The funds must meet all other Cboe listing requirements. The SEC also leaned on existing regulations, such as Regulation Best Interest and FINRA's stricter rules for leveraged products.
This is not the first time Volatility Shares has launched leveraged crypto ETFs. In 2023, they introduced the first leveraged crypto ETF in the U.S., tracking Bitcoin futures. The race for higher leverage began in October 2025 when Defiance filed for 49 funds with 3x long and short exposure, and Volatility Shares filed for 5x products. The SEC pushed back, halting reviews of products above 2x exposure in December 2025.