SEC Greenlights 3x Leveraged ETPs for Bitcoin, Ethereum

The US Securities and Exchange Commission (SEC) has made history by greenlighting six new financial products that offer three times the daily exposure to Bitcoin, Ethereum, and four additional commodities. These 3x leveraged ETPs are designed using futures contracts rather than direct asset holdings.

The approval comes as part of a rule change filed by Cboe BZX Exchange, paving the way for the listing of these new instruments on regulated US markets. The products will mechanically amplify both gains and losses on a daily basis, with a +5% move in Bitcoin translating into a +15% gain on the corresponding ETP.

The SEC's approval marks a turning point in US crypto regulation, broadening the range of instruments accessible to institutional and retail investors. However, each ETP will still need to complete its registration with the SEC, a separate process that can take several weeks.