SEC approves Cboe listing rule for Volatility Shares triple-leveraged crypto funds
The SEC has cleared an exchange rule change letting Cboe BZX list triple-leveraged bitcoin and ether futures funds from Volatility Shares, opening a path for daily 3x crypto exposure on a major U.S. exchange. The approval lands after regulators previously pushed back on similar leveraged crypto products that had already shown steep, rapid losses in volatile markets.
- On Friday, October 2, the SEC approved Cboe BZX’s listing rule for VS Trust’s 3x Bitcoin ETF and 3x Ether ETF.
- The order covers six total funds: bitcoin, ether, gold, silver, crude oil and natural gas, all seeking 3x daily benchmark returns.
- VS Trust’s August 17 preliminary prospectus lists proposed tickers BITH for Bitcoin and ETHK for Ether, both still “subject to completion.”
- 3x daily leverage target sought versus standard spot crypto exposure
- 6 total funds cleared under the same single SEC order
- 96% losses suffered by earlier 2x leveraged crypto funds, per prior Cboe filing
- Aug 17 date VS Trust filed its prospectus, about six weeks before approval
The SEC approved on Friday, October 2, a proposed rule change filed by Cboe BZX Exchange to list VS Trust’s 3x Bitcoin ETF and 3x Ether ETF, according to reporting by CryptoSlate. The SEC order clears an exchange-rule hurdle for Volatility Shares-sponsored products seeking amplified daily exposure to crypto futures. Approval of the listing rule does not by itself make the funds tradable for brokerage investors.
SEC order covers six funds, from bitcoin to natural gas
The order approved six separate funds organized as series of VS Trust, a Delaware statutory trust, under the preliminary prospectus VS Trust filed August 17. Alongside the 3x Bitcoin ETF and 3x Ether ETF, the filing lists 3x Gold, 3x Silver, 3x Crude Oil and 3x Natural Gas funds, all seeking triple the daily return of their respective benchmarks.
Cboe’s generic listing standards for commodity trusts exclude products that target a specified multiple of a benchmark. That gap forced Volatility Shares to seek individual exchange approval for each 3x fund rather than relying on a standardized listing rule.
CryptoSlate’s August coverage noted Cboe had petitioned for the listing rule after existing 2x leveraged crypto funds suffered losses of up to 96% amid volatile futures markets. The October order resolves that specific exchange-rule question, though the six funds still must satisfy ongoing listing requirements beyond this initial approval.
Daily 3x target resets at each NAV calculation, filing says
Each crypto fund seeks three times its benchmark’s daily performance before fees and expenses, according to the prospectus. The benchmarks track portfolios of first- and second-month bitcoin or ether futures contracts, with each fund holding futures alongside cash collateral rather than spot cryptocurrency.
The prospectus defines a single day as the span between successive net asset value calculations, and the funds intend to rebalance daily under normal conditions. That daily reset means each day’s gain or loss compounds onto an already-changed asset base, so a fund’s return over weeks or months can diverge sharply from three times the benchmark’s cumulative move.
The prospectus states that returns over longer periods “usually will differ in amount, and possibly even direction,” from the 3x target. An investor could lose the full value of a position within a single day or overnight, according to the filing.
The SEC’s own investor bulletin, published through Investor.gov, separately warns that leveraged exchange-traded products can depart substantially from their stated multiple over weeks or months, particularly during volatile stretches. SEC staff have specifically flagged leveraged bitcoin-futures ETFs as capable of exposing investors to sudden, significant losses.
Registration effectiveness, first trading date still unconfirmed
The October 2 order approves only Cboe’s exchange rule change; it does not establish that VS Trust’s registration statement is effective or that any fund has begun trading. The prospectus lists proposed ticker symbols BITH for the Bitcoin fund and ETHK for the Ether fund, but both remain “subject to completion” under SEC rules, meaning shares cannot be sold until registration takes effect.
As of Sunday, October 4, that effectiveness date and a first trading day for either fund had not been confirmed. Brokerage investors should not treat the exchange-rule approval alone as confirmation the products are available to buy.
The funds also carry a structural distinction despite the “ETF” branding in their names: the SEC order classifies them as exchange-traded products structured as Commodity-Based Trust Shares, not as registered investment companies under the Investment Company Act of 1940. Shareholders in VS Trust’s funds therefore lack the protections that come with 1940 Act registration, and each fund will issue investors a Schedule K-1 rather than standard fund tax reporting.
The BlockWest read. We read this as a test of how quickly exchanges can push leverage products through once a narrow listing-rule gap closes, not a signal that trading starts soon. Brokerages planning to offer BITH and ETHK need to build margin and disclosure workflows around daily-reset leverage before launch, and the open registration timeline gives them room to do that rather than rushing retail access to a 3x crypto futures product.
Volatility Shares and VS Trust must still clear SEC registration effectiveness before BITH and ETHK can list and trade on Cboe BZX, a date the filing has not yet set. Investors watching for a launch should track the next amendment to VS Trust’s prospectus for a confirmed effective date rather than reading the October 2 exchange-rule order as a green light to trade.
