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The order clears six Volatility Shares products for Cboe’s BZX listing but sets no launch date and leaves trading to registration timing.
The SEC approved on October 2 a Cboe rule change to list six exchange-traded funds from Volatility Shares that target three times the daily moves of futures on Bitcoin, Ethereum, gold, silver, crude oil and natural gas, according to the agency’s order. The 3x leveraged Bitcoin and Ethereum funds are part of the group. The order sets no launch date, and Cboe’s filing says trading cannot begin until each fund’s registration statement is effective.
The products are designed to deliver triple the daily change of futures on their underlying assets. They obtain exposure primarily through futures. Because they reset daily, the 3x objective applies one day at a time and performance over longer periods can diverge from three times the asset’s move. An example in the report shows that a 10% drop followed by a 10% rise leaves the asset down 1%, while a 3x fund would end down 9% after falling 30% then rising 30%.
Regulators have flagged that risk for retail buyers. The SEC and FINRA issued an alert saying “returns over more than a day can differ significantly from the daily target.” Brokers must apply Regulation Best Interest to recommendations, and FINRA requires stricter sales and margin rules for leveraged products, the order notes.
Cboe could not use its fast-track listing standard for commodity funds because it excludes products that seek a multiple of an asset’s return. That is why the exchange sought and the SEC granted specific approval for these six funds. Apart from the 3x objective, the funds must meet Cboe’s other listing requirements. Shares are slated to trade on Cboe’s BZX Exchange like common stock, the report says.
The approval follows a period of caution from the agency on higher leverage. In December 2025 the SEC halted review of products above 2x exposure and sent warning letters to nine issuers, including ProShares, and in March 2026 it asked issuers to avoid 5x offerings, according to the report. Defiance filed in October 2025 for 49 long and short 3x funds, and Volatility Shares had filed for 5x products. Volatility Shares has continued to roll out 2x funds, adding Cardano, Stellar and Chainlink in April 2026 to earlier products on Bitcoin, Ethereum, Solana and XRP, the report says.
These are not the market’s first triple-exposure funds. Earlier 3x products on silver, crude oil and natural gas from other issuers have since left the market, per the order, while a 3x gold product from another issuer still trades.
The next dated step is procedural. Cboe’s filing states that none of the six funds will trade until their registration statements take effect, and the SEC order sets no launch date.
Source: Decrypt.
This article was written with AI assistance and reviewed by an editor.
This content is for informational purposes only and does not constitute financial advice.
🧠 HafidWatch Take
Approving these 3x leveraged ETFs highlights the SEC’s delicate balance between allowing innovation and managing risk. While existing sales and margin rules are intended to protect investors, the potential for significant divergence from daily targets means that retail buyers could still face unexpected losses if market volatility spikes or holding periods extend beyond a day. The effectiveness of current protections will likely shape whether future approvals maintain or tighten leverage limits.
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