The Securities and Exchange Commission on Oct. 2 cleared the listing and trading of Volatility Shares' 3x Bitcoin and 3x Ether exchange-traded products on Cboe BZX, advancing six funds in the sponsor's VS Trust, including leveraged gold, silver, crude oil and natural gas products.

The order covers products registered under the Securities Act of 1933 but not regulated as investment companies under the Investment Company Act of 1940. The commission approved Cboe's product-specific rule change under the Securities Exchange Act of 1934. Cboe's generic listing standards exclude leveraged commodity-based trusts, requiring a separate filing each time.

The crypto products would trade under proposed tickers BITH for bitcoin and ETHK for ether, per Volatility Shares' Aug. 17 preliminary prospectus. The order does not specify a launch date. Cboe's rule filing makes trading conditional on the registration statement becoming effective.

What exposure do BITH and ETHK offer?

Each ETP seeks three times the daily return of a benchmark built from first- and second-month CME bitcoin or ether futures contracts, before fees and expenses. Cash and cash equivalents would back those positions as collateral or margin, with portfolios rebalancing daily. The funds would not hold bitcoin or ether directly, separating them from spot bitcoin and ether ETPs that hold the underlying tokens.

The target is a single day's performance, not three times the underlying's return over an investor's entire holding period. The approval extends beyond the daily 2x exposure offered by Volatility Shares' existing BITX and ETHU funds, which the SEC cited in its reasoning.

How does daily resetting shape the risk profile?

Daily rebalancing drives compounding effects when prices move in alternating directions. The prospectus illustrates this with a hypothetical two-day sequence: the reference asset returns to its starting value, while a daily 3x fund loses roughly 5.45% before fees, expenses and financing costs.

The prospectus also warns that an investor could lose the full principal value of an investment within a single day or overnight. Rolling expiring contracts into later-dated ones produces an additional performance drag when the replacement contracts trade higher, the prospectus notes without naming the phenomenon as contango.

The order states that returns over holding periods longer than one trading day "can differ in magnitude—and even direction—from three times the benchmark's return."

Where do the funds sit in the existing complex?

Despite the "ETF" label, the SEC classifies the new funds as ETPs—exchange-traded products registered under the Securities Act of 1933. They join a wider leveraged-commodities slate in the same Oct. 2 order covering VS Trust's 3x precious-metals and energy futures products.

The decision widens the daily-reset ETF universe first opened by Volatility Shares' existing BITX and ETHU complexes, while leaving Cboe's generic listing standards untouched. Future leveraged-commodity ETPs targeting three-times exposure will continue to require product-specific SEC approval. Cboe BZX filing SR-CboeBZX-2026-065 anchors any listing to the registration statement's effectiveness, with no fixed deadline for first trade.

Volatility Shares has not announced a launch date, and the SEC order does not contemplate one. Market participants will watch the firm's subsequent prospectus amendments and effectiveness filings for the next concrete milestone.