【SEC approves 3x BTC/ETH listing rule applications, but that doesn’t mean the product is already trading】
In Binance Square’s trending list, the No. 10 item describes the news as “the SEC approved a 3x leveraged Bitcoin and Ethereum ETP.” A check of the SEC’s October 2 Release 34-106577 shows the precise object was a listing rule change submitted by Cboe BZX: allowing the exchange to list six products under the commodity trust share listing rules for VS Trust, including 3x Bitcoin and Ether products. The timeline is: Cboe submitted on August 10; the proposal was published on August 19 for public comment; and on October 2, the SEC approved the rule proposal. This is not another approval by the SEC for a spot BTC/ETH ETF, nor does it serve as an endorsement of the underlying asset direction.
The product structure is also easy for headlines to compress. The SEC filing states the goal is to achieve a “daily” performance benchmark measured before fees are deducted that is 3 times the benchmark. The benchmark is made up of near-month and next-near-month futures prices; the fund is primarily futures-based, with cash used as collateral or margin. The document also explicitly notes: although the names contain “ETF,” these commodity trust shares are treated under the ETP framework and are not open-end funds regulated under the Investment Company Act of 1940.
The words “daily” determine the holding-period outcome. A mathematical example: the underlying falls 10% from 100 to 90, then rises 11.11% back to 100. If a product ideally delivers 3x every day, the path is 100→70→93.33; when the underlying returns to the starting point, the product still loses about 6.67%—before considering fees, futures basis, or tracking error. This is only a compounding illustration and cannot be taken as a forecast of the fund’s actual return.
What can be confirmed right now is that the exchange’s rule change was approved. The SEC order itself does not prove that the shares have already been listed, that there were trades on the first day, or that there is spot BTC/ETH buying. The next steps are to wait for the issuer documents, code, and the actual listing notice, and then observe trading activity and fund size. Don’t turn “rule approval” directly into “the ETF is already trading.” There are at least three observable checkpoints: the exchange rule approval, issuance documents and code being ready, and real trading appearing after listing. This SEC command only confirms the first step; the latter two still need to be verified by the issuer, exchange announcements, and trading records.#BTC #ETH
In Binance Square’s trending list, the No. 10 item describes the news as “the SEC approved a 3x leveraged Bitcoin and Ethereum ETP.” A check of the SEC’s October 2 Release 34-106577 shows the precise object was a listing rule change submitted by Cboe BZX: allowing the exchange to list six products under the commodity trust share listing rules for VS Trust, including 3x Bitcoin and Ether products. The timeline is: Cboe submitted on August 10; the proposal was published on August 19 for public comment; and on October 2, the SEC approved the rule proposal. This is not another approval by the SEC for a spot BTC/ETH ETF, nor does it serve as an endorsement of the underlying asset direction.
The product structure is also easy for headlines to compress. The SEC filing states the goal is to achieve a “daily” performance benchmark measured before fees are deducted that is 3 times the benchmark. The benchmark is made up of near-month and next-near-month futures prices; the fund is primarily futures-based, with cash used as collateral or margin. The document also explicitly notes: although the names contain “ETF,” these commodity trust shares are treated under the ETP framework and are not open-end funds regulated under the Investment Company Act of 1940.
The words “daily” determine the holding-period outcome. A mathematical example: the underlying falls 10% from 100 to 90, then rises 11.11% back to 100. If a product ideally delivers 3x every day, the path is 100→70→93.33; when the underlying returns to the starting point, the product still loses about 6.67%—before considering fees, futures basis, or tracking error. This is only a compounding illustration and cannot be taken as a forecast of the fund’s actual return.
What can be confirmed right now is that the exchange’s rule change was approved. The SEC order itself does not prove that the shares have already been listed, that there were trades on the first day, or that there is spot BTC/ETH buying. The next steps are to wait for the issuer documents, code, and the actual listing notice, and then observe trading activity and fund size. Don’t turn “rule approval” directly into “the ETF is already trading.” There are at least three observable checkpoints: the exchange rule approval, issuance documents and code being ready, and real trading appearing after listing. This SEC command only confirms the first step; the latter two still need to be verified by the issuer, exchange announcements, and trading records.#BTC #ETH
