SEC Clears 3x Leveraged Bitcoin and Ethereum Funds for Trading
Summary
The SEC approved Cboe’s listing of six Volatility Shares funds targeting three times the daily moves of Bitcoin, Ethereum, gold, silver, crude oil and natural gas. The funds use futures and reset daily, so returns over longer periods can diverge sharply from three times the underlying asset’s performance, potentially magnifying losses. Regulators have warned investors about these risks, while broker-dealers face existing sales and margin requirements. The approval does not set a launch date; trading can begin only after each fund’s registration statement takes effect.
