The U.S. Securities and Exchange Commission has approved a Cboe BZX rule change for six triple-leveraged products, including Bitcoin and Ethereum funds, while separate registration clearance is still required before public trading can start.
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The SEC approved Cboe BZX’s proposal on October 2, 2026. The order covers six products from VS Trust: 3x Bitcoin ETF, 3x Ether ETF, 3x Gold ETF, 3x Silver ETF, 3x Crude Oil ETF, and 3x Natural Gas ETF.
Each product seeks three times the daily performance of its reference asset before fees and expenses. The SEC filing classifies the funds as Commodity-Based Trust Shares and therefore as exchange-traded products, despite “ETF” appearing in their names.
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The approval opens a listing path for the new crypto ETPs on Cboe BZX. It also places Bitcoin and Ether beside gold, silver, crude oil, and natural gas in the same leveraged product group.
How Will the 3x Crypto ETPs Work?
The Bitcoin and Ether products are not intended to physically hold either cryptocurrency. Instead, each product is expected to track a particular benchmark comprising a basket of near-term future contracts on the underlying cryptocurrencies.
Cash and cash equivalents may act as collaterals. The crypto ETPs aim to deliver thrice the daily price movement of the respective benchmark indices on any given trading day. Therefore, assuming that the associated benchmark gains 1%, the crypto ETPs aim to deliver 3%.
The target return refers to a single day’s trading. As per the prospectus, outcomes may vary from triple the cumulative return on the benchmark over extended periods owing to compounding daily returns.
The registration filing further warns about how leverage enhances both profits and losses, implying that the 3x Crypto ETPs operate off daily returns and not necessarily three times the returns over any duration of holding period.
Who Is Behind the New Products?
The VS Trust acts as the issuing body, while Volatility Shares LLC is the sponsor firm. As per the SEC order, the firm will administer the fund operations.
Volatility Shares currently offers leveraged digital asset products. According to the SEC order, Volatility Shares operates 2x Bitcoin ETF (BITX) and 2x Ether ETF (ETHU), amongst others, in its range of leveraged products traded on US stock markets.
Bloomberg ETF analyst Eric Balchunas described the order as a huge victory for Volatility Shares. The authorization paves the way for Volatility Shares to transition from 2x leveraged ETFs to 3x cryptocurrency ETPs linked to Bitcoin and Ethereum.
Why Are the Products Still Unable to Trade?
Approval of the exchange rule is merely the first step towards the issuance process. Thereafter, the Form S-1 Registration Statement for the VS Trust must attain effectiveness prior to marketing and offering the securities in the secondary markets.
The August 17 Form S-1 discloses tickers for all six ETPs—the 3x Bitcoin ETF and 3x Ether ETF receive the designations BITH and ETHK, respectively.
The filing process is still incomplete; it states that the securities shall not be offered until the registration statement attains effectiveness. Therefore, the new crypto ETPs cannot enter into secondary trading simply on account of the approval of the exchange rule alone.
When Could the Crypto ETPs Begin Trading?
No definitive launch schedule emerges from the SEC approval order. Successful trading rests upon the effectiveness of the registration statement and completion of other launch processes.
The 2nd October approval enables listing and trading of the ETPs by Cboe BZX Exchange provided the requisite registration process is satisfied.
The approval represents a regulatory milestone but not necessarily a market launch. Patience remains imperative for investors anticipating the triple-leverage Bitcoin and Ether ETPs pending conclusion of the registration process prior to initial trade execution.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
