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SEC approves Cboe to list 3x leveraged Bitcoin and Ethereum funds

The SEC order, approved October 2, covers six triple-leverage funds that trade on Cboe BZX, including products tied to Bitcoin and Ethereum price moves.

Reported · Written up by our desk · Market Structure

The SEC has approved a rule change allowing Cboe to list six funds designed to deliver three times the daily price moves of Bitcoin and Ethereum, along with exposure to gold, silver, crude oil, and natural gas, according to the agency's order.

Decrypt reports the funds, provided by Volatility Shares, would trade on Cboe's BZX Exchange like a regular stock. The lineup includes Volatility Shares products built on triple daily move targets, extending beyond the firm's existing 2x Bitcoin and Ethereum offerings.

The funds mainly seek their leverage exposure through futures contracts. The SEC-approved framework also highlights that the leverage resets daily, so results over longer periods can diverge materially from three times the underlying move.

For example provided in the discussion of the daily reset mechanics, if Bitcoin futures fall 10% on one day and rise 10% the next, the underlying would end down 1%, while a 3x fund could end down 9% due to compounding effects.

Latest closeGold $4,172.10 ▼0.7%|Silver $60.71 ▼0.0%|WTI crude $91.26 ▼1.7%

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