SEC Clears 3x Bitcoin and Ether Futures Products for Trading

The U.S. Securities and Exchange Commission (SEC) has cleared Cboe BZX to list 3x Bitcoin and Ether futures products. The order, issued on October 2, covers six Volatility Shares products under VS Trust, which track the daily performance of Bitcoin, Ether, gold, silver, crude oil, and natural gas through futures-based benchmarks.

The products, which will have a 3x target, will reset their exposure each day to pursue the target against their updated portfolio value. This daily structure changes how gains and losses compound, with the potential for increased gains during steady advances and greater losses during declines.

Investors in these products will own shares in futures-based portfolios rather than Bitcoin or Ether, and will not be able to withdraw cryptocurrency into a personal wallet. The products are classified as commodity-based exchange-traded products, not traditional registered investment funds.

The SEC's order does not establish a trading date, and sales will depend on an effective registration statement before investors can buy the products.