New Leveraged ETP Approval
SEC Approves New Three Times Leveraged ETPs Across Six Major Assets
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Key Points
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The funds are part of the VS Trust, managed by VolatilityShares.
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Cboe BZX submitted its proposed rule change on Aug. 10; the SEC published it in the Federal Register on Aug. 19 for public comment before approving it.
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The funds seek three times the daily performance of indexes tied to the assets before fees and expenses.
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Bloomberg Intelligence ETF analyst Eric Balchunas reported the approval in a post on X on Oct. 2.
The SEC approved the first triple-leveraged exchange-traded products tracking Bitcoin and Ether, along with four commodity funds, in a major expansion of crypto investing tools. Bloomberg Intelligence reported that the Cboe BZX Exchange can now list VolatilityShares funds seeking three times the daily performance of Bitcoin, Ether, gold, silver, crude oil, and natural gas before fees and expenses.
The Bitcoin and Ether funds track CME futures prices, while the commodity funds use other derivatives. These products amplify both gains and losses on a daily basis, making them riskier than standard ETFs. The approval marks the first time the SEC has cleared triple-leveraged crypto products for US investors.
How the Approval Process Unfolded
Cboe BZX submitted its rule change proposal on August 10. The SEC published the proposal in the Federal Register on August 19 to allow public comment. After gathering feedback, the SEC green-lit the application in early October, clearing the way for VolatilityShares to list the six funds.
Why Triple Leverage Appeals to Crypto Traders
Leveraged products let investors bet bigger without putting up the full amount in cash. A 3x fund amplifies returns threefold on winning days. For example, if Bitcoin rises 10%, a 3x fund seeks a 30% gain. But losses work the same way — a 10% drop triggers a 30% loss.
Crypto traders already have access to leveraged trading on exchanges. This SEC approval brings that tool into the regulated ETF wrapper, where products face stricter oversight and disclosure rules. It opens the door for traditional brokerage accounts to offer triple-leverage exposure without margin accounts.
The Six Funds Include Commodities Beyond Crypto
The VolatilityShares family spans six assets: Bitcoin, Ether, gold, silver, crude oil, and natural gas. Bitcoin and Ether products tie to CME futures contracts, ensuring tight price tracking. The commodity funds use futures and related instruments to chase three times daily performance.
Gold and silver appeal to inflation hedgers. Oil and gas funds track energy prices tied to global supply shocks. By bundling crypto and commodities under one trust, VolatilityShares offers a one-stop shop for leveraged daily bets across asset classes.
Daily Rebalancing Creates Hidden Costs
Leveraged ETFs rebalance daily to maintain their 3x target. Each rebalance locks in gains or losses, then resets the ratio. Over time, this daily reset can erode returns in choppy markets — a quirk called "decay" that catches many traders off guard.
The funds' prospectuses will disclose these mechanics and fee structures. Investors should read the fine print before buying. These products work best for short-term tactical bets, not long-term buy-and-hold strategies.
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