US SEC Approves 3x Leverage Bitcoin and Ethereum ETPs

The U.S. Securities and Exchange Commission (SEC) has approved 3x leverage Bitcoin and Ethereum exchange-traded products (ETPs). This approval is expected to enhance institutional investors' access to the digital asset market. Bloomberg ETF analyst Eric Balchunas stated that the SEC has approved ETPs for Bitcoin, Ethereum, gold, silver, crude oil, and natural gas under the Securities Act of 1933. The approved ETPs are included in the product line of the VS Trust managed by Volatility Shares, designed to track three times the daily returns of the underlying asset index using futures contracts. The Bitcoin and Ethereum ETPs primarily invest in futures contracts traded on regulated markets and do not hold physical assets directly. The SEC's approval is likely to amplify institutional investors' interest, and the introduction of leveraged products could increase market liquidity. However, 3x leverage ETPs carry high risks, necessitating caution from investors. Experts suggest that such products are suitable for experienced traders betting on short-term market movements and are not appropriate for long-term investments. The SEC's approval is seen as a significant milestone indicating that digital assets are becoming more deeply integrated into the traditional financial system.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.