SEC Approves Triple-Leveraged Bitcoin and Ether ETFs for Cboe BZX

The US Securities and Exchange Commission (SEC) has given the green light to Cboe BZX's proposal for six triple-leveraged products, including a 3x Bitcoin ETF and a 3x Ether ETF. The approval order, issued on October 2, covers six series of the VS Trust sponsored by Volatility Shares LLC. These funds will not directly hold physical Bitcoin or Ether, but will instead gain exposure through futures contracts, cash, and cash equivalents.

The Bitcoin ETF, which will trade under the proposed ticker BITH, will use short-term Bitcoin futures as its benchmark. The Ether ETF, formerly known as the 3x Ether ETF, will use short-term Ether futures. Each fund seeks to track three times the daily move of its reference benchmark, which is a five-day period each month.

The SEC's approval does not mean that the funds will start trading immediately. Registration effectiveness remains a separate requirement before public sales can begin. The VS Trust registration statement remained preliminary when filed in August, and it said sales would begin only after the registration statement became effective.