SEC Approves First 3x Leveraged Bitcoin and Ethereum ETFs

The US Securities and Exchange Commission (SEC) has cleared the way for the first exchange-traded funds (ETFs) offering 3x daily exposure to Bitcoin and Ethereum. Volatility Shares’ 3x Long Bitcoin ETF (BTC3) and 3x Long Ethereum ETF (ETH3) are set to begin trading on October 6, 2026, despite the failure of Congress to advance the CLARITY Act and broader crypto market-structure rules.

These ETFs aim to deliver three times the daily performance of their respective cryptocurrencies, amplifying both gains and losses. For example, a 2% daily rise in Bitcoin could translate into approximately a 6% gain in BTC3, while a 2% decline could result in a 6% loss. However, due to daily resets and compounding effects, longer-term returns may not simply multiply the underlying crypto’s performance by three.

The launch of these highly leveraged products highlights a growing divergence between regulatory product approvals and legislative progress. While Congress remains divided over comprehensive crypto market structure, the SEC has allowed these funds to proceed through standard securities-law procedures. This expansion of leveraged crypto products comes less than three years after the SEC approved the first US spot Bitcoin ETFs in January 2024.

Industry observers note that while the SEC’s move does not equate to an endorsement of 3x crypto speculation, it signifies a notable expansion in the types of crypto risk available to investors through regulated markets. Traders should be aware that the same 3x leverage applies to market downturns, amplifying potential losses alongside gains.