Volatility Shares, one of the most aggressive ETF issuers in crypto, has filed with US regulators to launch a suite of 5x leveraged exchange-traded funds tracking bitcoin. ether and XRP.
The proposed products would amplify daily price movements fivefold, meaning they could turn a 2% change in the underlying asset into a 10% change in the ETF. This also means that a 2% drop in BTC or ETH would wipe out 10% of an investor’s exposure in a single day.
The company’s filing with the U.S. Securities and Exchange Commission (SEC) also includes 5x funds for Solana. and several high-volatility stocks, such as Coinbase (COIN), MicroStrategy (MSTR), Tesla (TSLA), and Alphabet (GOOGL).
In total, the bundle lists 27 products with 3x and 5x leverage levels, with an effective date of December 29, 2025. If approved, these will become among the most extreme crypto instruments available to US investors.
“They haven’t even approved 3x yet, and Vol Shares is saying ‘let’s try 5x,’” noted Eric Balchunas, ETF analyst at Bloomberg, referring to GraniteShares’ pending 3x XRP proposals.
VolShares filed for 5x single stock and crypto ETFs including 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 an option on long term government shutdown (if there is no government in 75 days they can… https://t.co/rVaYDcn9H0
– Eric Balchunas (@EricBalchunas) October 14, 2025
Leverage reset daily carries unique risks. Compounding and decreasing volatility means that even if bitcoin ends the week higher, a 5x ETF could underperform due to daily rebalancing.
Each evening, the fund rebalances to maintain its leverage ratio, buying after up days and selling after down days. Over time, these daily resets add up – and are not in the trader’s favor when prices collapse. If bitcoin swings back and forth during the week, constant rebalancing of the ETF can reduce performance even if BTC finishes higher.
In thin markets, especially around high-volatility assets like XRP, this dynamic 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 selloff in crypto futures, which was the industry’s biggest success to date.
