SEC clears Cboe to list six 3x leveraged Bitcoin, Ethereum and commodity funds
In brief
- SEC approved a Cboe rule change on October 2 covering six Volatility Shares funds.
- Funds target three times the daily moves of Bitcoin, Ethereum, gold, silver, oil and gas.
- Cboe's BZX Exchange is set to list the shares; the order sets no launch date.
- SEC and FINRA warned daily resets can make multi-day returns differ sharply from 3x.
How the funds work
Shares are set to trade on Cboe's BZX Exchange like a regular stock. The funds get their exposure mainly through futures contracts, and the target is simple on paper: if Bitcoin futures rise 2% in a day, the fund aims to gain 6% (a 2% fall aims for a 6% loss).
That's a one-day promise.
The funds reset daily, so results over longer stretches can drift well away from three times the asset's move. Decrypt's example makes the point clearly. A 10% drop followed by a 10% rise leaves the asset down 1%, while a 3x fund ends down 9%. The SEC and FINRA have issued an investor alert warning that returns over more than one day can differ significantly from the daily target.
Why Cboe needed SEC sign-off
Cboe's fast-track listing rules for commodity funds exclude products that chase a multiple of an asset's return, so the exchange needed individual approval for these six. Apart from the 3x target, the funds still have to meet all of Cboe's other listing requirements. The SEC leaned on existing safeguards (Regulation Best Interest, plus FINRA's stricter sales and margin rules for leveraged products).
It isn't the first 3x lineup in these markets, either. Per the order, earlier 3x products from other issuers tied to silver, crude oil and natural gas have since left the market, while a 3x gold product from another issuer still trades.
A long road past 2x
Volatility Shares launched the first leveraged crypto ETF in the U.S. in 2023, tracking Bitcoin futures. Spot Bitcoin ETFs followed in January 2024 after a decade of rejections.
The regulator hasn't always been receptive to higher leverage, according to Decrypt's account. In October 2025, Defiance filed for 49 funds with 3x long and short exposure and Volatility Shares filed for 5x products. Two months later, in December 2025, the SEC halted review of products above 2x exposure and sent warning letters to nine issuers, including ProShares. By March 2026, it was asking issuers to avoid 5x products.
Volatility Shares kept expanding at 2x in the meantime, launching Cardano, Stellar and Chainlink funds in April 2026 to sit alongside its existing Bitcoin, Ethereum, Solana and XRP products.
Timing for the new 3x funds is still open. The order doesn't set a launch date, and trading can't begin until each fund's registration statement takes effect.
Frequently asked questions
How do the new 3x leveraged Bitcoin and Ethereum funds work?
The funds aim to deliver three times the daily price move of their underlying asset, mainly through futures contracts. If Bitcoin futures rise 2% in a day, the fund aims to gain 6%; a 2% fall aims for a 6% loss. The target resets every day.
Why can 3x funds lose money even if the asset ends close to flat?
Because the funds reset daily, multi-day results can drift far from three times the asset's move. In Decrypt's example, a 10% drop followed by a 10% rise leaves the asset down 1% but a 3x fund down 9%. The SEC and FINRA have warned investors about this in an investor alert.
When will the 3x Volatility Shares funds start trading?
The SEC order sets no launch date. According to Cboe's filing, the shares can't trade on Cboe's BZX Exchange until each fund's registration statement takes effect.
