Volatility Shares, one of the most aggressive ETF issuers in the crypto space, has filed with US regulators to launch a suite of 5x leveraged exchange-traded funds tracking bitcoin ether and XRP.
The proposed products will amplify daily price movements by five times, meaning it can turn a 2% move in the underlying asset into a 10% swing in the ETF. It also means that a 2% drop in BTC or ETH would wipe out 10% of an investor’s exposure in a single day.
The firm’s filing with the US Securities and Exchange Commission (SEC) also includes 5x funding for Solana and several high-volatility stocks, such as Coinbase (COIN), MicroStrategy (MSTR), Tesla (TSLA), and Alphabet (GOOGL).
In total, the batch lists 27 products across 3x and 5x leverage levels with an effective date of December 29, 2025. If approved, these will become some of the most extreme crypto-linked instruments available to US investors.
“They haven’t even approved 3x yet and Vol Shares is like, ‘let’s try 5x,'” noted Eric Balchunas, ETF analyst at Bloomberg, referring to the pending 3x XRP proposal by GraniteShares.
VolShares applied for 5x single stocks and crypto ETFs incl COIN, CRCL, GOOG, MSTR, NVDA, PLTR, TSLA, Bitcoin, Ether, Solana, XRP… They haven’t even approved 3x and VolShares is like let’s try 5x. Maybe a possibility of long term government shutdown (if no government within 75 days they can… https://t.co/rVaYDcn9H0
— Eric Balchunas (@EricBalchunas) 14 October 2025
Leverage that resets daily carries unique risks. Compounding and falling volatility means that even if bitcoin ends the week higher, a 5x ETF could underperform due to daily rebalancing.
Every night the fund rebalances to maintain leverage, buying on up days and selling on down days. Over time, these daily resets add up – and not to a trader’s advantage when prices hit. If bitcoin swings both ways throughout the week, the ETF’s constant rebalancing could detract from performance, even if BTC ends higher.
In thin markets, especially around high-volatility assets like XRP, these dynamics can exaggerate price swings and trigger unintended losses.
The filing of the proposed shares comes as market participants continue to recover from last week’s $19 billion in liquidations across crypto futures in the industry’s biggest hit yet.
