SEC Approves First 3x Leveraged Bitcoin and Ethereum ETFs

The U.S. Securities and Exchange Commission (SEC) has given the green light to the first triple-leveraged Bitcoin and Ethereum exchange-traded funds (ETFs) in the country. On October 2, 2026, the SEC approved a rule change filed by Cboe BZX, allowing Volatility Shares to list six new 3x leveraged funds covering Bitcoin, Ethereum, gold, silver, crude oil, and natural gas.

The Bitcoin fund is expected to trade under the ticker BITH, while the Ethereum fund will use the ticker ETHK. Unlike traditional ETFs that hold the underlying assets, these funds will use regulated futures contracts to match three times the daily price move of Bitcoin or Ethereum. This means a 1% daily gain in the futures benchmark could result in a close to 3% gain for the fund, before fees, while a 1% daily loss could lead to a close to 3% loss.

However, the funds will not start trading immediately. Volatility Shares still needs its Form S-1 registration statements to become effective before trading can begin. The company has not announced a launch date for the new funds. Analysts have highlighted potential risks, noting that the daily reset feature of these funds can lead to significant losses over time, even if the underlying asset's price returns to its starting point.

This approval is part of a broader trend of regulatory activity around crypto products in the United States. The SEC has been reviewing various rules and guidelines related to digital assets, including staking receipt tokens, adviser crypto custody, and tokenized securities. Despite the approval, the 3x Bitcoin and Ethereum funds remain unavailable to investors until the registration statements are formally declared effective.