SEC Clears Path for 3x Bitcoin and Ether ETPs on Cboe BZX

The US Securities and Exchange Commission (SEC) has approved a rule change by Cboe BZX to list two new exchange-traded products (ETPs): the 3x Bitcoin ETP and the 3x Ether ETP, both sponsored by Volatility Shares. This decision removes a regulatory barrier to exchange listing, allowing these products to be listed on the exchange. However, it's essential to note that this approval does not mean the products are immediately available to investors. The decision only approves the exchange's rule change, not the registration itself.

The two products, BITH for the Bitcoin ETP and ETHK for the Ether ETP, have been listed in a preliminary prospectus dated August 17. According to this document, the securities may not be sold until the registration becomes effective. This approval covers six funds in total, including products tied to gold, silver, crude oil, and natural gas.

The crypto products' listing creates a path for instruments with a higher daily leverage target. This was necessary because Cboe's generic standards for commodity trusts do not include products that seek specific multiples of a benchmark index. As a result, the funds needed individual approval, although the other initial and ongoing listing requirements remain in force.