SEC Approves First 3x Leveraged Crypto ETPs, But Trading Awaits Registration
The US Securities and Exchange Commission (SEC) has approved six 3x leveraged exchange-traded products (ETPs) from Volatility Shares, a move that marks the first US approval of triple-leveraged crypto ETPs. The products, which track bitcoin, ether, gold, silver, crude oil, and natural gas, are not yet available for trading as they still require registration under the Securities Act of 1933.
The approval allows for the listing of the ETPs on the Cboe BZX exchange, but shares cannot be offered publicly until registration requirements are met. The products would provide exposure to the underlying assets through futures, which can result in higher costs and lower returns due to daily compounding and reset.
Volatility Shares' 3x ETPs would reset daily, meaning the multiplication is applied to one trading day at a time, rather than maintaining a fixed multiple over a longer period. This can lead to losses compounding faster and potentially wiping out the product if the underlying asset falls by more than one-third in a day.
The decision marks a move into a higher-leverage category, as twice-leveraged crypto products have been available in the US for some time. The approval was dated October 2, 2026, and carries release number 34-106577.