SEC approves first 3x leveraged Bitcoin and Ethereum ETFs in the US

What happened

The SEC approved a Cboe BZX rule change on October 2 that lets the exchange list six triple-leveraged funds from Volatility Shares. The lineup covers 3x Bitcoin, 3x Ether, 3x gold, 3x silver, 3x crude oil and 3x natural gas. Shares will trade on Cboe's BZX Exchange like a regular stock.

The Bitcoin and Ethereum funds will not hold BTC or ETH directly. Instead, they use regulated futures contracts, including CME-linked contracts, to target three times the daily move of their benchmarks. A 1% daily gain could produce roughly a 3% increase before fees, and a 1% move against the position could produce a 3% loss.

Cboe's fast-track listing rules for commodity funds exclude products that chase a multiple of an asset's return, so the exchange needed the SEC to approve these funds individually, per the order. The funds must still meet Cboe's other listing requirements.

Why it matters

The approval opens the way for more highly leveraged bitcoin trading products linked to regulated futures markets. It follows a stretch in which the SEC halted review of products above 2x exposure in December 2025 and sent warning letters to nine issuers, including ProShares, then asked issuers in March 2026 to avoid 5x products.

Leverage amplifies losses as well as gains, and the 3x target resets every day. The SEC and FINRA have warned that returns over more than a day can differ significantly from the daily target. In the example given by Decrypt, Bitcoin futures fall 10% on Monday and rise 10% on Tuesday: the asset ends down 1%, while a 3x fund ends down 9%.

The SEC leaned on existing guardrails. Brokers must act in a retail customer's best interest under Regulation Best Interest, and FINRA requires tougher sales and margin rules for leveraged products.

What the data shows

• The lineup includes 3x Bitcoin, 3x Ether, 3x gold, 3x silver, 3x crude oil and 3x natural gas funds.
• In October 2025, Defiance filed for 49 funds with 3x long and short exposure, and Volatility Shares filed for 5x products.
• Earlier 3x products tied to silver, crude oil and natural gas from other issuers have since left the market, while a 3x gold product from another issuer still trades.

Background

• Volatility Shares launched the first leveraged crypto ETF in the U.S. in 2023, tracking Bitcoin futures.
• Spot Bitcoin ETFs, which hold the coins directly, arrived in January 2024 after a decade of rejections.
• In April 2026 Volatility Shares launched 2x funds on Cardano, Stellar and Chainlink, adding to existing 2x products on Bitcoin, Ethereum, Solana and XRP.

What is still unclear

• The order sets no launch date, and shares cannot trade until each fund's registration statement takes effect.
• Volatility Shares still needs its Form S-1 registration statements to become effective before brokers can offer the new ETFs to investors, and there is no estimated date for a launch.

Questions readers ask