SEC Clears Path for 3x Leveraged Bitcoin and Ether ETPs

The U.S. Securities and Exchange Commission (SEC) has approved a rule change allowing six new futures-based ETPs from Volatility Shares' VS Trust to list and trade on the Cboe BZX exchange.

The ETPs target three times the daily performance of Bitcoin, Ether, and four commodities: gold, silver, crude oil, and natural gas.

The approved products include 3x Bitcoin and Ether ETPs, as well as 3x gold and silver ETPs, and 3x crude oil and natural gas ETPs.

The products will not physically hold the underlying assets, but instead use regulated futures contracts to track the prices of Bitcoin, Ether, and the other commodities.

The Bitcoin and Ether ETPs will track CME Group futures prices, while the other ETPs will track futures prices from CME Group and other exchanges.

The SEC approval is seen as a big win for Volatility Shares, which has already launched the first 2x Bitcoin and Ether ETPs.

However, the products still need to undergo a separate Form S-1 registration process before they can become effective and begin trading.