SEC Approves Cboe Listing for Six Leveraged Funds
- On October 2, the SEC approved Cboe’s request to list six 3x funds from Volatility Shares.
- The funds target three times the daily performance of futures contracts on assets like Bitcoin and Ethereum.
- No launch date has been set for these funds.
- The approval follows SEC warnings against leverage above two times in December and requests to avoid five times products in March.
- These funds reset daily, meaning their performance aims for three times the asset’s daily move, not over longer periods.
The SEC’s approval allows Cboe to list leveraged funds targeting triple the daily performance of major assets like Bitcoin and Ethereum futures contracts. This decision comes despite previous warnings about high leverage risks, emphasizing careful regulatory oversight in such financial products.
The approval highlights a significant step in expanding investment options linked to cryptocurrencies and commodities while maintaining caution around potential risks associated with leveraged trading strategies. (Source)
