SEC Clears Path for 3x Bitcoin and Ether ETF Listings

The U.S. Securities and Exchange Commission (SEC) has approved a rule change for the listing of three times the daily performance of Bitcoin and Ether exchange-traded funds (ETFs). This decision clears the way for the listing of the first U.S. exchange-traded products targeting 3x Bitcoin and 3x Ether.

The six products in question are series of the Volatility Shares Trust, with Volatility Shares LLC serving as the sponsor. They will not directly hold the digital assets they track, instead using futures contracts to establish exposure.

The approval covers leveraged futures exposure across six markets, with a shared daily performance objective. However, investors should be aware that the daily reset affects how returns accumulate, and alternating gains and declines can erode a fund's value through compounding.