SEC Approves 3x Leveraged Crypto and Commodity Funds for Trading
The U.S. Securities and Exchange Commission (SEC) has approved Cboe's request to list six new 3x leveraged funds from Volatility Shares. These funds will track Bitcoin, Ethereum, gold, silver, crude oil, and natural gas futures. The approval, granted on October 2, allows each fund to aim for three times the daily performance of its underlying asset. However, the order does not specify a launch date, pending each fund's registration statement.
The funds will trade on Cboe's BZX Exchange like regular stocks. Volatility Shares, known for its existing 2x Bitcoin and Ethereum products, is behind these new offerings. The approval comes after the SEC issued warnings in December 2025 about leverage above 2x and discouraged 5x products in March 2026.
These 3x funds reset daily, meaning their triple-leverage target applies only to each day's price movements. Over longer periods, returns can diverge significantly from the asset's actual performance. The SEC and FINRA have previously cautioned investors about these risks, noting that leveraged funds can experience compounded losses over time.
Volatility Shares has been active in the leveraged crypto ETF space, launching the first leveraged crypto ETF in the U.S. in 2023. The company continued to introduce 2x funds on various cryptocurrencies, including Cardano, Stellar, and Chainlink, despite the SEC's earlier pushback on higher leverage products.