SEC approves 3x Bitcoin and Ether futures funds listing

On Oct. 2, the SEC approved the Cboe BZX exchange's listing proposal for VS Trust's 3x Bitcoin ETF and 3x Ether ETF, allowing products that seek amplified daily crypto futures exposure. The order includes six funds linked to various commodities and follows a proposal from August. This change enables brokerage investors to access higher daily leverage targets, although individual approval was necessary due to Cboe's commodity-trust standards. The preliminary prospectus lists BITH for Bitcoin and ETHK for Ether, but securities cannot be sold until registration is effective. The order does not confirm registration effectiveness or trading start dates as of Oct. 4. The funds are classified as exchange-traded products (ETPs) and lack the investor protections of registered funds. Each product aims for three times its benchmark's daily performance, using futures contracts and cash collateral. The SEC warns that daily leveraged products can deviate significantly from their stated multiple over time, particularly in volatile markets, and leverage can amplify losses.

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