SEC Approves 3x Bitcoin and Ether Futures Funds

Key Summary

The SEC approved six 3x Bitcoin and Ether futures funds for listing on the Cboe BZX exchange, clearing a hurdle for amplified daily crypto futures exposure. The order applies to products sponsored by Volatility Shares, including gold, silver, and natural gas funds, and advances a proposal for higher daily leverage targets. The funds, proposed as 3x Bitcoin ETF (BITH) and 3x Ether ETF (ETHK), use futures alongside cash collateral and measure daily performance before fees and expenses. The daily 3x target does not guarantee triple the benchmark's cumulative return, as leverage amplifies losses and can lead to significant, sudden losses.