The SEC has approved a rule change that lets Cboe BZX list Volatility Shares' triple-leveraged Bitcoin and Ether ETFs. Trading cannot begin until the SEC declares each fund's registration statement effective, and the products carry a daily-reset structure that can erode returns over time.
On October 2, 2026, the SEC approved a rule change that lets the Cboe BZX Exchange list six triple-leveraged exchange-traded products from Volatility Shares, including a 3x Bitcoin ETF and a 3x Ether ETF. Neither ETF can trade yet.
Listing is approved, trading is not
Before either fund can trade, the SEC must declare its Form S-1 registration statement effective. The agency has not set a timeline for that review, and no launch date has been announced.
The proposed tickers are BITH and ETHK for the Bitcoin and Ether funds. Both aim to deliver three times the daily performance of their underlying futures benchmarks and do not hold spot Bitcoin or Ether directly.
How daily resets erode returns
The funds target three times the return of a single day, then reset. Because the leverage resets daily, returns over longer stretches can drift sharply away from three times the asset's longer-term move.
One example from the Motley Fool: if a coin rises 10% in a day, the fund rises about 30%. If the coin then falls about 9.1%, back to where it started, the leveraged fund shareholder ends with losses of about 5.5%. According to the Fool, the example appears in the Volatility Shares prospectus.
That drag has already shown up in a similar product. The Fool reports that the Volatility Shares 2x Bitcoin ETF lost 61.9% in the 12 months ending October 21, while Bitcoin fell 25.1% over the same period.
Fees and who the funds suit
The prospectus indicates the Bitcoin fund will charge a 1.85% management fee per year. It estimates the Bitcoin and Ether funds must earn 1.98% and 2.78% a year to break even, according to the Fool.
Volatility Shares is not new to leveraged crypto. It already runs the 2x Bitcoin ETF under the ticker BITX, and it manages over $1.2 billion in assets through that fund.
The Fool argues the new products are not intended for average investors and describes them as tools for hedge funds and institutional investors. In its words: "Most people should not buy them."
Sources: Crypto Briefing, The Motley Fool
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