Volatility Shares has made a new regulatory filing that could reshape how traders gain exposure to major cryptocurrencies like Bitcoin, Ethereum, and Solana.
Summary
- Volatility Shares filed for 5x leveraged ETFs on BTC, ETH, and SOL.
- The SEC has yet to clear 3x products, making approval uncertain.
- Funds could debut in early 2026 if filings are accepted.
Volatility Shares has applied to launch 5x leveraged exchange-traded funds for Bitcoin, Ethereum, and Solana, in what could become the most aggressive crypto fund filing yet
On Oct. 14, Volatility Shares filed documents with the U.S. Securities and Exchange Commission to introduce a new range of 3x and 5x leveraged ETFs tied to cryptocurrencies and major U.S. stocks.
The proposal builds on the firm’s experience with the 2x Bitcoin Strategy ETF, introduced in 2023, and expands its focus on high-risk, short-term trading products.
Bloomberg ETF analyst Eric Balchunas noted the SEC has yet to approve any 3x crypto ETFs, describing the 5x filing as a bold step. He added that the submission might be a preemptive move in case of regulatory delays linked to the U.S. government shutdown.
Focus on Bitcoin, Ethereum, and Solana
The filing lists Bitcoin, Ethereum, and Solana among the first cryptocurrencies covered under the proposed 5x funds. Other filings include highly traded stocks such as Tesla (TSLA), Nvidia (NVDA), Coinbase (COIN), and MicroStrategy (MSTR). Altogether, 27 ETFs were included in the submission, combining crypto and equity exposure.
These funds aim to provide 3-5 times the daily performance of the underlying asset through the use of futures, swaps, and options. If approved, they may list on exchanges such as CBOE BZX, with a tentative effective date of Dec. 29, 2025.
High risk, high reward
Leveraged ETFs magnify both profits and losses, making them suitable only for experienced traders. A 10% drop in Bitcoin could lead to a 50% loss in a 5x ETF, while sideways markets can quickly erode returns due to volatility decay. Expense ratios are expected to be higher than standard crypto ETFs.
Even so, the filing reflects rising demand for leveraged exposure as Bitcoin trades well over $110,000 and investors seek more aggressive tools to capture short-term moves. If regulators approve, the funds could launch in early 2026.
