The SEC greenlit the Cboe BZX exchange’s listing proposal for VS Trust’s 3x Bitcoin ETF and 3x Ether ETF on Oct. 2. This ruling clears an exchange-rule barrier for the Volatility Shares-sponsored products, which aim to provide amplified daily exposure to crypto futures.
Encompassing six funds in total—including offerings tied to silver, gold, natural gas, and crude oil—the order moves forward the proposal previously reported by CryptoSlate in August while the exchange was still awaiting permission.
This development paves the way for brokerage investors to access a higher daily leverage target. Because Cboe’s standard generic commodity-trust rules rule out products targeting specific multiples of a benchmark, these specific funds required individual approval, though all other ongoing and initial listing requirements continue to apply.
The Aug. 17 preliminary prospectus for VS Trust outlines the proposed tickers BITH for the Bitcoin offering and ETHK for the Ether version. These symbols are noted in a filing that remains subject to completion, and the prospectus emphasizes that the securities cannot be purchased until the registration becomes effective.
While the October ruling grants approval to the exchange’s rule amendment, it does not confirm that trading has commenced or that registration is effective. As of Oct. 4, both the first trading date and registration effectiveness remain unconfirmed, meaning investors cannot view the decision alone as proof that the funds are currently accessible through their brokers.
Despite the inclusion of “ETF” in their names, the SEC order categorizes the funds as exchange-traded products (ETPs) structured as Commodity-Based Trust Shares. Consequently, they lack the regulatory investor safeguards tied to funds registered under the Investment Company Act of 1940.
What the daily 3x target means
Before fees and expenses, each crypto vehicle aims to deliver three times the daily performance of its benchmark. These benchmarks track portfolios composed of first- and second-month futures contracts, with the funds utilizing cash collateral alongside futures. As a result, the benchmark reflects the daily return of a futures portfolio rather than just the spot price.
The preliminary prospectus defines a day as the period between successive calculations of net asset value. Under normal conditions, the funds try to rebalance on a daily basis. Because each day’s outcome compounds from a shifted asset value, the sequence of gains and losses plays a crucial role for anyone holding the products over extended periods.
An SEC investor bulletin cautions that daily leveraged products can diverge significantly from their stated multiples over the course of weeks or months, particularly during volatile market conditions. Similarly, the prospectus notes that returns over longer timeframes may vary significantly in both magnitude and direction. Therefore, a 3x daily objective does not guarantee three times the cumulative return of Ether or Bitcoin.
Additionally, leverage serves to magnify losses. SEC officials explicitly caution that ETFs leveraging Bitcoin futures strategies drive up volatility and can subject investors to sudden, substantial losses.