SEC Approves Cboe BZX Listing Rules for 3x Leveraged Bitcoin and Ether ETPs

The SEC approved listing rules for VS Trust’s 3x Bitcoin and 3x Ether products on October 2. The decision allows the Cboe BZX exchange to move forward with the proposed exchange-traded products, which are sponsored by Volatility Shares.

While the approval clears a regulatory hurdle for the exchange, it does not mean the products are currently available to trade. As of October 4, registration effectiveness and a specific launch date remain unconfirmed. The preliminary prospectus lists the proposed tickers as BITH for the Bitcoin product and ETHK for the Ether product.

These funds are structured as Commodity-Based Trust Shares rather than funds registered under the Investment Company Act of 1940. Because Cboe’s standard rules for commodity trusts do not cover products seeking specific multiples of a benchmark, these funds required individual approval from the SEC.

The products aim to provide three times the daily performance of their respective benchmarks before fees and expenses. These benchmarks are based on portfolios of first- and second-month futures contracts, meaning the funds use futures and cash collateral to track performance rather than spot prices.

The prospectus and SEC warnings highlight that these products are designed for daily targets. Because the funds rebalance daily, the compounding effect means that returns over longer periods can differ significantly from the 3x daily objective. The SEC has cautioned that leveraged strategies can amplify volatility and lead to sudden, significant losses for investors.