Volatility at its peak: 3x BTC ETFs approved

[LuckyCrypto777]

The first triple-leveraged funds on Bitcoin (and Ethereum) have been approved in the US. Their price will move approximately three times faster than BTC and ETH in a single day.
Such instruments are particularly risky, but the very fact that the SEC has approved them demonstrates how far crypto has already penetrated traditional markets.

In my opinion, this will increase volatility and slightly improve liquidity. After all, risk funds will be interested.

https://ru.tradingview.com/news/coinpedia:ae4fa82b5094b:0-sec-approves-3x-leveraged-bitcoin-ether-and-other-etps-for-listing/

[Oshosondy]

But bitcoin ETF 3X is very risky, just like those products like BTC 3X long on exchanges that are listed under the spot market. You can say it will give more liquidity, but the first thing you should think about is liquidation and how risky they are. I have been seeing some news about it recently I think in August or early September.

[LuckyCrypto777]

But bitcoin ETF 3X is very risky, just like those products like BTC 3X long on exchanges that are listed under the spot market. You can say it will give more liquidity, but the first thing you should think about is liquidation and how risky they are. I have been seeing some news about it recently I think in August or early September.

That's why I never traded with leverage. With a smart strategy and averaging, a normal trader can get by with a regular spot.

I'd guess that funds aren't just regular traders, and the loss of deposits won't be that significant in the overall ratio. But in any case, it's a boost to trading volumes.

[slaman29]

The first triple-leveraged funds on Bitcoin (and Ethereum) have been approved in the US. Their price will move approximately three times faster than BTC and ETH in a single day.

Massive milestone blablabla I'm actually bored with ETF news for BTC.

Remember guys, ETFs leveraged like this just makes or loses money faster (price doesn't move faster btw OP). But does it change things on chain? Nope. Does it increase the risk of extreme liquidation yes.

Doesn't affect me, or most people using BTC, but the news will.

[atookz]

One more note: the listing rule is the one that the SEC approved – not the products themselves – so they cannot be traded just yet. They are still awaiting the S-1 registration to go into effect and there's no launch date yet. They also don't hold actual BTC, they use CME futures.

As @slaman29 mentioned, it's not the BTC price that is changing faster, it is the profits and losses of the holder. The "3x" is only valid per day. For example, if BTC goes up 10% then down 10%, the result is -1%, but with a 3x product, up 30% then down 30% gives you -9%. A market that continues to fluctuate in price will steadily erode the value. It's known as volatility decay.

The difference from 3x longs on exchanges is that there's no margin call or liquidation, so the most you can lose is what you put in. However, if BTC experiences a significant sell-off on one day, the value could be completely erased. Volume and liquidity will probably rise, but it's difficult to say how much impact it will have on the spot price, as they are futures-based products.