Volatility Shares has filed for a 5x ETF for Bitcoin and Ethereum.

Recently, a noteworthy development has occurred in the crypto market. U.S. ETF issuer Volatility Shares has filed with the U.S. Securities and Exchange Commission (SEC) for new leveraged funds that aim to magnify the price movements of Bitcoin (BTC), Ethereum (ETH), and XRP by five times. This application presents an interesting option for investors in search of high risk and high return potential.

The new ETF products proposed by Volatility Shares aim to track daily price movements of cryptocurrencies such as Bitcoin, Ethereum, and XRP while increasing them fivefold. In addition, funds linked to high volatility stocks such as Solana (SOL), Coinbase (COIN), MicroStrategy (MSTR), Tesla (TSLA), and Alphabet (GOOGL) are also included in the application. This new series includes a total of 27 different ETF products, offered in 3x and 5x leveraged versions for investors.

The anticipated effective start date for the application has been set for December 29, 2025. Bloomberg ETF analyst Eric Balchunas also commented on these developments affecting the dynamics of the crypto market and investor expectations, stating, “Even 3x leveraged XRP ETFs are being considered while Volatility Shares tries for 5x.”

However, it should be noted that 5x leveraged ETFs carry high risks. Such funds can experience 'compound loss effects' due to price fluctuations. For instance, even if Bitcoin ends the week with gains, 5x ETFs may perform worse than expected due to volatile movements. In these products, the fund rebalances its positions at market close every day, which can lead to additional losses during periods of high volatility.

The recent $19 billion liquidation in crypto futures highlights the timeline of Volatility Shares’ filing. While the market continues its efforts to recover, the regulatory boundaries for leveraged crypto products in the U.S. are being re-evaluated.