SEC Clears 3x Bitcoin and Ether ETFs as OKX–ICE Venture Files for 24/7 Tokenized Stocks
The SEC has cleared the way for the first 3x leveraged bitcoin and ether ETFs in the US, while the OKX–ICE joint venture has notified regulators of plans for a round-the-clock tokenized stock venue covering 63 NYSE-listed companies.
4 min read
A New Leverage Ceiling for Crypto ETFs
On October 2, the SEC approved a Cboe BZX rule change that allows six exchange-traded funds from Volatility Shares to target three times the daily return of their underlying assets. The lineup covers bitcoin and ether, as well as gold, silver, crude oil and natural gas.
Until now, US crypto funds had been capped at 2x leverage, so the decision raises the ceiling by a full turn. The funds cannot trade yet. The issuer still needs the SEC to declare its registration statement effective, and the order sets no deadline. The products will hold regulated futures tied to bitcoin and ether rather than the tokens themselves.
Why 3x Funds Demand Caution
Analysts were quick to stress that these are trading tools, not long-term investments. Each fund must rebalance daily to keep leverage fixed at 3x, which forces it to buy futures after gains and sell after losses. Those flows tend to cluster near the market close and can amplify intraday moves as assets grow.
The daily reset also creates volatility decay. If bitcoin rises 10% one day and falls 10% the next, it ends down 1%, but a 3x fund would gain 30% and then lose 30%, finishing down 9%. Rolling futures contracts adds a further drag. The issuer's own prospectus warns that the funds are speculative and suitable only for investors who can bear a total loss.
OKX and ICE Move Toward 24/7 Tokenized Equities
On October 4, OKXICE, the joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange, notified the SEC that it intends to operate a tokenized securities venue. It would run under the agency's new innovation exemption, a five-year framework set out in a September 17 order.
The initial list covers 63 NYSE-listed companies, including Nvidia, Apple, Microsoft, Tesla and JPMorgan Chase. The venue would be permissioned and onchain, with trading available around the clock. Under the exemption, tokenized shares must carry the same shareholder rights as the underlying stock, including dividends and voting.
What the Filing Does and Does Not Mean
The notice is not an approval. Each issuer has 30 days to opt out before its tokenized shares can trade, so the list of 63 could shrink, and OKXICE must still meet every condition of the exemption. No launch date has been announced.
The Bigger Picture for US Crypto Markets
Both stories point the same way. With broader crypto legislation stalled in Congress, US regulators are using rule approvals and exemptions to open the market to new products. Bitcoin was trading in the mid-$80,000s on Monday, and investors will now watch when the 3x funds list and how many issuers decline the tokenized-stock plan.