SEC Clears Six Triple-Leveraged ETPs, Including First Bitcoin and Ethereum Options
The US Securities and Exchange Commission (SEC) has cleared six triple-leveraged exchange-traded products (ETPs) for listing on October 2, 2026. Among these, the first triple-leveraged ETPs on Bitcoin and Ethereum have been approved.
The products, sponsored by Volatility Shares LLC, will track the daily move of their underlying assets. However, it's essential to note that the leverage is on a daily basis, not a monthly or yearly basis. This means that the products will reset their value to zero every morning, and the leverage will be recalculated based on the daily move.
One of the critical aspects of these products is their use of futures contracts to track the underlying assets. This means that the products will not hold actual Bitcoin or Ethereum, but rather forward contracts that can expire and require rolling. This can lead to additional costs and volatility.
Another important consideration is the concept of path dependency, which means that the outcome of the product depends not only on the final price but also on the route it took to get there. This can result in unexpected losses, even if the underlying asset has only a small loss.
The products will be listed on a US exchange, and it's unlikely that they will be directly available in German brokerage accounts due to EU regulations. However, investors in Germany can explore alternative options, such as European crypto ETPs and ETNs, leveraged certificates, and derivatives at brokers.