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 that track bitcoin. ether and XRP.
The proposed products would amplify daily price movements five-fold, meaning they can turn a 2% move in the underlying asset into a 10% swing in the ETF. That 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 5× funding for Solana. and several high-volatility stocks, such as Coinbase (COIN), MicroStrategy (MSTR), Tesla (TSLA), and Alphabet (GOOGL).
In total, the lot lists 27 products at 3x and 5x leverage levels, with an effective date of December 29, 2025. If approved, they would become some of the most extreme crypto-linked instruments available to US investors.
“They haven’t even approved 3x yet, and Vol Shares is saying, ‘let’s try 5x,’” Bloomberg ETF analyst Eric Balchunas noted, referring to GraniteShares’ pending 3x XRP proposals.
VolShares applied for 5x individual stock and cryptocurrency 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 for a 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 that resets daily carries unique risks. Compounding and falling volatility mean that even if bitcoin ends the week higher, a 5x ETF could underperform due to daily rebalancing.
Each night, the fund rebalances to maintain its leverage ratio, buying after bullish days and selling after bearish days. Over time, those daily resets compound, and not in the trader’s favor when prices swing. If bitcoin swings both ways throughout the week, the ETF’s constant rebalancing can impact performance even if BTC ends higher.
In tight markets, especially around high-volatility assets like XRP, these dynamics can exaggerate price swings and lead to unwanted losses.
The filing of the proposed actions comes as market participants continue to recover from last week’s $19 billion selloff in crypto futures in the industry’s biggest such hit to date.
