SEC Approves Leveraged Bitcoin and Ethereum Futures Products

The U.S. Securities and Exchange Commission (SEC) has given the green light to list leveraged products that aim to track three times the daily moves of Bitcoin (BTC) and Ethereum (ETH) futures prices. This approval follows a proposed rule change filed by Cboe BZX, allowing six products to be listed, including a 3x Bitcoin ETF sponsored by Volatility Shares LLC.

These products are classified as exchange-traded products (ETPs) and invest in commodity-linked assets. Unlike traditional exchange-traded funds (ETFs), they are not regulated under the Investment Company Act of 1940. The 3x Bitcoin leveraged product is designed to offer investment exposure equivalent to roughly three times the daily move in Bitcoin futures prices, not the spot price of Bitcoin itself.

The SEC's decision also covers similar products tied to gold, silver, crude oil, and natural gas. All will operate as separate series of VS Trust. The approval process began with Cboe BZX's proposed rule change on August 10, which was published on August 19 and went through a public comment period.