SEC Approves Listing of 3x Bitcoin and 3x Ether ETPs on Cboe BZX

The US Securities and Exchange Commission (SEC) has approved the listing of six triple-leveraged exchange-traded products (ETPs) on the Cboe BZX exchange, including 3x Bitcoin and 3x Ether ETPs. The approval is a significant development for the crypto market, as it allows for the listing of leveraged ETPs on a US exchange.

The six ETPs, sponsored by Volatility Shares LLC, will offer three times the daily performance of their respective reference assets, including Bitcoin, Ether, gold, silver, crude oil, and natural gas. The ETPs will not directly hold physical assets, but will gain exposure through futures contracts, cash, and cash equivalents.

The SEC's approval was based on the exchange's proposal, which was filed on August 10. The Commission found the proposal consistent with Sections 6(b)(5) and 11A of the Exchange Act, which address investor protection, market integrity, and access to market information.

The approval does not guarantee the success of the ETPs, and investors should be aware of the risks associated with leveraged products, including compounding risk and the potential for losses even if the underlying asset later returns near its starting level.