3x Bitcoin and Ether futures funds clear SEC listing hurdle
Summary
The SEC approved Cboe BZX’s rule change to list six leveraged commodity trust products, including Volatility Shares’ 3x daily Bitcoin and Ether futures funds. The approval clears an exchange-listing hurdle but does not make the products available: registration effectiveness and a first trading date remained unconfirmed as of Oct. 4. The funds target three times the daily return of futures benchmarks, not spot crypto, and daily compounding can cause longer-term returns to diverge sharply from that multiple. The products are classified as commodity-based trust shares, not funds registered under the Investment Company Act of 1940. SEC staff warn that leveraged Bitcoin-futures products can amplify volatility and cause sudden losses.
