Volatility Shares plans to launch both 3x and 5x leveraged ETFs for Bitcoin, Ethereum, Solana, and major US stocks.
The proposed ETFs aim to give traders high short-term exposure using futures swaps and options.
SEC approval is pending, but the ETFs could launch by late 2025 or early 2026 if cleared.
Volatility Shares has filed a new filing at the U.S. Securities and Exchange Commission (SEC). The company will introduce a line of leveraged exchange-traded funds (ETFs) based on both cryptocurrencies and large American companies. The proposal will have 3x and 5x leveraged ETFs, with Bitcoin, Ethereum, and Solana being some of the crypto assets.
This filing, made on October 14, includes a total of 27 ETF products. These funds aim to provide amplified daily exposure, either three or five times, to the underlying asset. The firm plans to use futures, swaps, and options to achieve this leverage. If approved, these ETFs could list on the CBOE BZX exchange.
Focus on High-Risk Trading Strategies
The move builds on the company’s earlier product, the 2x Bitcoin Strategy ETF, which launched in 2023. In May, Volatility Shares launched the first non-leveraged XRP futures ETF, XRPI, to offer safer XRP exposure on Nasdaq. With the new proposal, Volatility Shares expands its focus on short-term, high-risk trading products. The 5x leverage filing is considered the most aggressive in the crypto ETF space to date.
The filing includes plans for leveraged ETFs not only for cryptocurrencies but also for widely traded equities. These include Tesla, Nvidia, Coinbase, and MicroStrategy. The approach reflects a growing demand among traders for high-reward, short-term trading vehicles. Moreover, VolatilityShares applied for futures-based Solana ETFs that provide leveraged exposure of 1x, 2x, and -1x last year.
Leverage Amplifies Gains and Losses
Leveraged ETFs offer increased potential returns, but they also raise the risk of rapid losses. A 10% decline in Bitcoin, for example, could result in a 50% loss in a 5x leveraged ETF. Market stagnation can also eat into gains due to volatility decay.
These products are designed for experienced traders who can manage short-term exposure. As with other leveraged ETFs, expense ratios are expected to be higher than traditional offerings. Traders using these products often face increased fees due to the complex financial instruments involved.
Possible Launch Timeline and Regulatory Considerations
The proposed ETFs may become effective by December 29, 2025, if the SEC authorizes them. However, approval is not guaranteed. The regulatory body has yet to approve any 3x or higher leveraged crypto ETF. The timing of this filing may relate to concerns about regulatory delays due to a potential government shutdown.
Despite the risks, the filing signals growing interest in more aggressive crypto and equity trading tools. As Bitcoin’s price remains above $110,000, traders are looking for new ways to maximize short-term market movements. A final decision on the proposal is expected to arrive in early 2026.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Trump Threatens to Destroy Iran's Nuclear Power Plants; Bitcoin Quickly Recovers $60 Billion in Market Value
Bitcoin (BTC) experienced significant volatility following Trump's threats against Iran's nuclear facilities, with market capitalization evaporating $6 billion before rebounding to $71,000. The event triggered market panic, forcing traders into liquidations and demonstrating cryptocurrency's heightened sensitivity to geopolitical risks. Bitcoin has declined 23% year-to-date, with markets closely monitoring the subsequent impact of Trump's statements.
GateNews2m ago
A certain address holds 40x leveraged short positions on $46.09 million BTC, with liquidation price at $71,711.
Gate News report: On March 24th, according to on-chain analyst Ai Yi's monitoring, a certain address is holding a 40x leverage short position of 650 BTC worth $46.09 million. The order opened at a price of $70,520 and is currently showing an unrealized loss of $246,000. If the price rises to $71,711, it will trigger liquidation. The address has set take-profit and stop-loss orders, with stop-loss beginning above $71,300 and gradual take-profit starting at $69,500.
GateNews3m ago
Ledger Co-Founder Calls for Armed Self-Defense Rights for Cryptocurrency Holders
Ledger co-founder Larchevêque calls for cryptocurrency holders to have the right to bear arms for self-defense against violent robbery. His views stem from psychological trauma caused by the kidnapping incident, reflecting digital asset holders' concerns about security issues.
GateNews5m ago
"10.10" $19 billion crypto collapse event unexpectedly drives the rise of on-chain options
The 2025 cryptocurrency market collapse resulted in massive asset evaporation, but on-chain options startups are seizing growth opportunities. On-chain options demand is rising as institutional investors increasingly focus on options as a risk hedging tool, driving market diversification.
GateNews5m ago
Ledger Founder Kidnapping Suspect Arrested in Bitcoin Extortion Case
Police arrest a suspect linked to the kidnapping case of David Balland, co-founder of Ledger. The criminal group committed violence against him and his partner to extort bitcoin. International cooperation has intensified efforts to combat violent crimes targeting cryptocurrency, reminding holders to enhance security awareness.
GateNews15m ago
Bitcoin Market Sentiment Turns Defensive as $685 Million Put Bets Surge
Recent changes have emerged in the Bitcoin derivatives market, with traders investing approximately $685 million in put options over the past 30 days, reflecting cautious market sentiment. This shift demonstrates that investors are transitioning from offensive strategies to risk management, particularly amid growing macroeconomic uncertainty. Rising demand for put options typically signals future price risks, as investors seek to balance between controlling drawdowns and locking in gains.
GateNews34m ago
