SEC approves first 3x bitcoin and ether ETFs in the U.S.
The SEC approved a Cboe BZX rule change for six Volatility Shares ETFs targeting three times the daily return of assets including bitcoin and ether, raising the U.S. crypto-fund leverage ceiling from 2x. The funds cannot launch until their registration statements become effective and will use regulated futures rather than hold tokens. Daily rebalancing can amplify market moves, while volatility decay and futures-rolling costs can erode returns over time; the prospectus warns investors could lose their entire investment. The products are geared toward short-term trading, not long-term holding. Separately, bitcoin’s implied-volatility index has remained around 35%–40% since mid-September, indicating relatively calm conditions, though extended calm can precede larger moves.
