SEC Clears 3x Crypto ETFs, Breaking Previous 2x Leverage…
By Abdelaziz Fathi
AI summary of the source article
The U.S. Securities and Exchange Commission has approved a Cboe BZX rule change allowing Volatility Shares to list six 3x leveraged funds tied to Bitcoin, Ether, gold, silver, crude oil, and natural gas. The crypto funds will deliver three times daily benchmark performance via CME futures and collateral rather than direct spot holdings. Daily portfolio rebalancing exposes longer-term holders to compounding risks and futures roll costs such as contango. While Cboe received exchange-listing approval on Oct. 2, the funds cannot trade until the securities registration process is finalized.
Why it matters
The decision expands regulated daily crypto leverage beyond current 2x limits and places digital assets alongside traditional tactical commodities like crude oil and gold in U.S. brokerage accounts.
Key facts
- The SEC approved a Cboe BZX rule change on Oct. 2 for six 3x leveraged funds covering Bitcoin, Ether, gold, silver, crude oil, and natural gas.
- The funds will hold CME futures and cash equivalents rather than direct cryptocurrency or spot commodities.
- Trading has not yet begun because Volatility Shares must still complete the securities registration process.