SEC Clears Path for Triple-Leveraged Crypto Funds

The Securities and Exchange Commission (SEC) approved a rule change on Friday that allows six triple-leveraged products to list, including funds tied to Bitcoin and Ethereum.

BlackRock's iShares Bitcoin Trust ETF (IBIT) has flashed a golden cross, a bullish sign for traders. The 50-day simple moving average (SMA) of IBIT crossed above its 200-day SMA, according to Koyfin data. This indicates that the shorter-term average is outperforming the longer-term average.

The SEC's approval allows Volatility Shares' VS Trust to list six leveraged products on the Cboe BZX Exchange, including Bitcoin and Ethereum funds. These funds seek three times the daily return of their benchmark. However, it's essential to note that returns over longer periods can diverge from this multiple and even move in the reverse direction.

BlackRock's iShares Bitcoin Trust ETF saw net inflows of $195.57 million on October 1, exceeding the group's net inflow. The total net assets across US spot Bitcoin exchange-traded funds hit $109.34 billion as of October 1.