SEC Clears Path for Triple-Leveraged ETPs
The US Securities and Exchange Commission (SEC) has approved a Cboe BZX rule change, allowing Volatility Shares to list six triple-leveraged exchange-traded products (ETPs). The approval does not confirm that the products have begun trading, but rather clears a hurdle for their potential listing and trading.
The six products include 3x Bitcoin, 3x Ethereum, and 3x Gold, among others, and aim to achieve three times the daily performance of their reference assets. The SEC order specifies that the products use futures for Bitcoin and Ether exposure, making them structurally different from simply holding the assets.
The approval follows a separate SEC proposal concerning crypto custody rules, signaling ongoing developments in the US crypto framework. However, the market response to the news was modest, with Bitcoin's price increasing by 1.3% to $86,300.
The SEC's order detailed the six funds as part of the VS Trust, outlining their exposure to futures benchmarks and listing requirements. However, registration requirements must still be completed before shares can be publicly offered, creating a gap between regulatory approval and investors' ability to trade.