The SEC approved a rule change on October 2 that permits Cboe's BZX Exchange to list six new leveraged funds from Volatility Shares. The funds are designed to deliver three times the daily price movements of Bitcoin, Ethereum, gold, silver, crude oil, and natural gas futures contracts.
Each fund will trade like a regular stock through brokerages. If Bitcoin futures rise 2% in a day, the fund aims to gain 6%. Conversely, if futures fall 2%, the fund aims to lose 6%. The funds will achieve this exposure primarily through futures contracts, which allow investors to gain price exposure without owning the underlying asset.
How Daily Reset Works
A critical feature of these funds is their daily reset mechanism. The 3x leverage promise applies only to single-day performance. Over longer periods, results can diverge significantly from three times the underlying asset's movement.
For example, if Bitcoin futures drop 10% on Monday then rise 10% on Tuesday, the asset ends down approximately 1%. A 3x leveraged fund tracking the same moves would fall 30% on Monday, then gain 30% on Tuesday, ending down approximately 9%. The SEC and FINRA have warned investors that returns over more than one day can differ significantly from the stated daily target.
Regulatory Path to Approval
Cboe's standard fast-track rules for commodity funds exclude products that chase multiples of an asset's return, requiring individual SEC approval for these leveraged products. Apart from the 3x target, the funds must meet all other Cboe listing requirements.
The SEC relied on existing regulatory safeguards, including Regulation Best Interest, which requires brokers to act in retail customers' best interest, and FINRA rules that impose stricter sales and margin requirements for leveraged products.
Recent Industry Context
Volatility Shares launched the first leveraged cryptocurrency ETF in the U.S. in 2023, tracking Bitcoin futures. The company subsequently expanded its offerings with 2x leverage products across multiple cryptocurrencies including Ethereum, Solana, and XRP.
In 2025 and 2026, the SEC took a cautious approach to higher leverage products. In December 2025, the agency halted review of products with leverage above 2x and sent warning letters to nine issuers. In March 2026, it asked issuers to avoid 5x products.
Earlier 3x leveraged products from other issuers tied to silver, crude oil, and natural gas have since left the market. A 3x gold product from another issuer continues to trade.
The SEC's approval order sets no launch date. According to Cboe's filing, the shares cannot begin trading until each fund's registration statement takes effect.
