SEC Clears Path for Triple-Leverage Crypto Products Amid Golden Cross Signal
The spot Bitcoin ETFs opened October with fresh cash and saw one of its largest funds flash a classic technical signal, which many traders treat as bullish. The 'golden cross' is triggered when a short-term simple moving average crosses above a longer-term average, and it has arrived for BlackRock's iShares Bitcoin Trust (IBIT) as it traded near $84,800 on Friday.
The SEC cleared the way for six Volatility Shares VS Trust products to list on the Cboe BZX Exchange, which will track bitcoin, ether, gold, silver, crude oil, and natural gas with triple-leverage. The new funds aim for three times the daily return of their benchmarks and inherit a warning that compounding and volatility can push results far from that multiple.
The approval of these leveraged crypto products comes as spot Bitcoin ETFs saw significant inflows on October 1, with BlackRock's IBIT taking in $195.57 million alone. The aggregate net assets across the spot bitcoin ETF cohort reached about $109.34 billion, and week-to-date net inflows through October 1 stood at $51.25 million.
The listing approval is not a trading start date, as the registration statement must become effective before any fund may begin trading. The arrival of 3x vehicles would add another compliance layer once they go live, which could be challenging for advisers and platforms already navigating evolving crypto custody rules.