SEC Clears 3x Bitcoin and Ethereum ETPs, but Trading Hasn’t Started
The SEC has approved Cboe BZX's proposal to list a new generation of 3x leveraged products tied to Bitcoin, Ether and four traditional commodities, although the funds are not yet available for trading.
Summary:
- The SEC approved Cboe BZX’s listing proposal for 3x BTC and ETH products alongside four commodity funds.
- BITH and ETHK cannot begin public sales yet because their registration statement is still preliminary.
- The products target three times the daily performance of futures-based benchmarks.
- Futures rolling adds another source of performance drag beyond daily leverage and compounding.
The Oct. 2 order covers six Volatility Shares products targeting triple daily exposure to Bitcoin, Ethereum, gold, silver, crude oil and natural gas. The SEC’s own database confirms approval of Cboe’s proposed rule change under BZX Rule 14.11(e)(4).
Bloomberg Intelligence senior ETF analyst Eric Balchunas quickly flagged the decision, calling it a “big win for VolatilityShares.” He also pointed to a broader distinction in the approval: all six products fall under the Securities Act of 1933, putting the crypto products in the same regulatory package as leveraged metals and energy ETPs.
Looks like SEC just approved a 3x Bitcoin ETP as well as 3x Ether, Gold, Silver, Oil, Nat Gas under 33 Act. Wow. Big win for VolatilityShares. https://t.co/MpZuVafHF7
— Eric Balchunas (@EricBalchunas) October 2, 2026
There is still one major step between approval and trading. The SEC order approves Cboe’s listing framework, but BITH and ETHK cannot launch until the related registration statement becomes effective. As of Oct. 4, that effectiveness and a first trading date remain unconfirmed.
Bitcoin Leverage Is Moving From 2x to 3x
The approval extends a market that already exists rather than creating leveraged crypto exposure from scratch.
Volatility Shares launched its 2x Bitcoin product BITX in 2023. That fund targets twice Bitcoin’s daily performance through derivatives and had roughly $1.2 billion in net assets in September, showing that leveraged crypto exposure has already attracted substantial capital.
BITH and ETHK would push that structure to 3x.
Their proposed tickers and structures are already disclosed in the S-1: BITH for the 3x Bitcoin ETF and ETHK for the 3x Ether ETF.
Both belong to VS Trust and are designed around futures and other linked instruments rather than direct ownership of BTC or ETH. SEC
That puts another regulated product between spot crypto exposure and derivatives trading directly through a futures account.
What Investors Would Actually Be Buying
The six products approved for listing span crypto, metals and energy, but their common feature is leveraged daily exposure.
Instead of repeating their structure throughout the article, the differences are clearer side by side:
The extra leverage makes daily moves straightforward but longer holding periods considerably less predictable.
If the relevant Bitcoin benchmark rises 3% in one session, a product meeting its objective would target roughly a 9% gain before fees and expenses. A 3% decline implies roughly a 9% loss.
The relationship stops being that simple once multiple trading days are involved.
A $100 Example Shows the Compounding Problem
Suppose Bitcoin rises 10% on day one and falls 10% on day two.
A $100 position in the underlying becomes $110 and then falls to $99, producing a two-day loss of 1%.
A hypothetical 3x daily product rises 30% to $130 on the first day. A 30% decline from there leaves approximately $91, or a 9% two-day loss.
READ MORE: Michael Saylor Hints at Bitcoin Move as STRC Volatility Hits 9%
Bitcoin ended almost where it started, yet the leveraged product lost substantially more.
This is why BITH’s objective is not “three times Bitcoin’s return.” It is three times the specified daily benchmark performance.
Volatility Shares’ own filing warns that compounding can cause results over periods longer than one day to differ significantly from the daily target. SEC
BITH Has Another Drag: The Futures Curve
Daily resetting is only one part of the equation.
Because BITH uses Bitcoin futures, it must also replace contracts approaching expiration with later-dated contracts. The economics of that process depend on the futures curve.
When longer-dated futures trade above nearer contracts, a condition known as contango, maintaining exposure can require selling the cheaper expiring contract and buying a more expensive replacement. That creates negative roll yield.
This is particularly relevant now.
Volatility Shares states in BITH’s own registration filing that Bitcoin futures had returned to contango by mid-2026 after briefly entering backwardation during the late-2025 and early-2026 market decline. The issuer warns that rolling costs can have a significant negative impact on performance over time.
The filing goes further: because the funds roll futures frequently, contango or backwardation can have a greater performance impact than it would for a strategy rolling less often.
That creates two separate sources of divergence for a BITH holder:
- Volatility drag from daily 3x resetting and compounding.
- Roll yield from maintaining futures exposure.
Neither exists in the same form for an ETP that simply holds Bitcoin directly.
Why the SEC Needed a Separate Approval
The Oct. 2 decision is also more specific than the headline “SEC approves 3x Bitcoin ETF” suggests.
Cboe’s generic listing standards do not automatically cover products seeking a specified multiple of a benchmark. The exchange therefore submitted a Rule 19b-4 proposal asking the SEC to permit these six leveraged products under its Commodity-Based Trust Shares framework.
The Commission approved that proposal after determining it was consistent with the Exchange Act, including requirements concerning investor protection and prevention of fraudulent and manipulative practices.
The SEC also distinguishes these products from conventional investment-company ETFs. Its order defines them as ETPs registered under the Securities Act of 1933 but not regulated under the Investment Company Act of 1940.
Bitcoin and Ether were not singled out in the approval. The same order covers 3x exposure to gold, silver, crude oil and natural gas, placing crypto within a broader leveraged commodity-product framework.
Approval Is Done, Launch Is the Next Milestone
For BITH and ETHK, the remaining regulatory step now matters more than another debate over the Oct. 2 order.
The SEC has approved Cboe’s ability to list and trade the products. Volatility Shares’ registration statement, however, still says it is “Subject to Completion” and that securities may not be sold until the filing becomes effective.
The S-1 also confirms that none of the six new funds had commenced operations as of the filing.
Investors searching for BITH or ETHK therefore should not interpret the SEC order as evidence that shares are already available.
The next concrete signal will be an effective registration statement followed by Volatility Shares confirming a launch date. After trading starts, the more interesting numbers will be assets, spreads and volume, particularly whether demand for 3x Bitcoin exposure can develop alongside an existing 2x product that already manages more than $1 billion.
And for BITH specifically, the first volatile stretch in Bitcoin will offer a much more useful test than launch-day volume: how closely a 3x daily futures product tracks its objective once compounding and the futures curve start working at the same time.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
