On October 2, 2026, the U.S. Securities and Exchange Commission approved an amendment to the Cboe BZX listing rules for six ETPs issued by Volatility Shares through the Rule 19b-4 process. This marks a significant milestone as it represents the first time crypto funds in the U.S. have been approved to exceed the previous 2x leverage cap. The approved lineup covers 3x Bitcoin (BITH), 3x Ethereum (ETHK), 3x Gold (GDLU), 3x Silver (SLVK), 3x Crude Oil (OILY), and 3x Natural Gas (NATX), with each fund targeting 3x the daily performance of their underlying assets through futures contracts. As reported by CoinDesk, the decision clears an exchange-rule hurdle for products that seek amplified daily crypto futures exposure, with the order advancing a proposal for which the exchange was still seeking permission in August.
These leveraged products use futures contracts supplemented by cash, adjusting their exposure daily to achieve the 3x leverage objective. A 1% daily increase can generate a 3% gain before fees, while a 1% drop can result in a 3% loss. According to the latest reports, VS Trust's August 17 preliminary prospectus proposes BITH as the Bitcoin product's symbol and ETHK as the Ether product's symbol. The order classifies the funds as exchange-traded products structured as Commodity-Based Trust Shares, although the funds' names use the term ETF. However, the funds cannot trade yet as the issuer still needs SEC approval to declare its registration statement effective, with no specific deadline set in the order. These products will hold regulated futures tied to bitcoin and ether rather than actual tokens, and must rebalance daily to maintain 3x leverage. The approval provides investors with a regulated exchange-traded vehicle to obtain amplified daily exposure without directly borrowing money or using a crypto derivatives account.
According to Volatility Shares' preliminary prospectus filed as part of a Form S-1 registration statement, the company acknowledges that volatility decay poses significant risks. As reported by CoinDesk, when bitcoin rises 10% one day and falls 10% the next, a 3x fund would gain 30%, then lose 30%, ending down 9%. The filing explicitly states that an investment in 3x Bitcoin ETF is not suitable for all investors and should be considered only by persons who can bear the risk of total loss. The more volatile the benchmark, the greater the potential for volatility decay, with FINRA warning about this risk and noting that the sequence of daily variations can cause cumulative performance to diverge from three times the underlying asset's performance. The October order approves the exchange's rule change but does not establish that registration is effective or trading has begun, with registration effectiveness and a first trading date remaining unconfirmed as of October 4.
Despite the regulatory approval, investors cannot yet trade these six products as the issuer must still obtain the effectiveness of its registration, which will determine the launch date. As reported by Cointribune, these ETPs are not covered by the Investment Company Act of 1940, remaining subject to rules applicable to their structure and related assets. The approval comes amid mixed market conditions, with spot Bitcoin ETFs recording $119 million in net inflows on October 6, with BlackRock's IBIT accounting for almost the entire inflow with $122 million. However, the trend was notably different for spot Ethereum ETFs, which recorded $202 million in net outflows on the same day, with the entire ETH ETF outflow coming from BlackRock's ETHA. According to AMBCrypto, BTC ETFs have recorded $165.59 million in outflows during October so far, while ETH ETFs recorded $506.15 million in outflows during the same period. The next critical step will be the effective registration of the six funds, which will measure market interest and investment flows in a context marked by record gold prices and continued demand for Bitcoin ETFs.
