SEC Approves Listing of Six Triple-Leveraged Products, Including Bitcoin and Ethereum Funds

The Securities and Exchange Commission (SEC) has approved a Cboe BZX Exchange rule change to allow the listing of six triple-leveraged products, including funds tied to Bitcoin and Ethereum. This move has significant implications for the cryptocurrency market, particularly for BlackRock's iShares Bitcoin Trust ETF (IBIT). According to Koyfin data, IBIT's 50-day simple moving average has crossed above its 200-day average, forming a golden cross, which is often seen as a bullish sign. The golden cross occurs when the shorter-term average moves above the longer-term average.

BlackRock's iShares Bitcoin Trust ETF has seen substantial inflows, with $195.57 million invested on October 1, according to SoSoValue data. The total net assets across the funds have reached $109.34 billion, with net inflows totaling $51.25 million through October 1. The approval of these leveraged products will expand the selection of Bitcoin products available to investors. Volatility Shares' VS Trust has filed for these products, which seek to achieve three times the daily return of their benchmark.

However, it's essential to note that leveraged funds can be volatile and may not perform as expected over longer periods. Volatility Shares has previously warned that returns over longer periods can diverge from the multiple and even move in the opposite direction. Trading in these funds will only begin once their registration becomes effective.