SEC Approves First 3x Leveraged Bitcoin and Ether ETPs

The US Securities and Exchange Commission has approved the first 3x leveraged Bitcoin and Ether exchange-traded products, issued by Volatility Shares, with trading pending final S-1 effectiveness. It is a milestone moment: leveraged single-day crypto exposure is now available inside the regulated ETP wrapper on Wall Street.

The approval lands in a cooling institutional market. Weekly flows for September 28–October 2 (Farside data) showed spot Bitcoin ETFs taking in just $82.9M net — a sharp slowdown from the prior week’s $2.39B — while spot Ether ETFs bled $118M in net outflows, reversing the previous week’s roughly $690M of inflows. Bitcoin was trading near $84,600, down about 2% on the day.

A word of caution: 3x leveraged products amplify daily moves in both directions and are designed for short-term tactical use, not buy-and-hold. They can significantly underperform their multiple over longer holding periods.

Sources: SEC filings via Volatility Shares; Farside Investors ETF flow data