Daily-reset 3x leveraged funds rebalance their exposure every day, meaning losses compound and gains apply to a reduced balance after declines. The SEC approved on Oct. 2 the listing rules for VS Trust’s 3x Bitcoin and Ethereum funds, with a 1.85% annual management fee. These partnership products use futures contracts and generate taxable allocations without cash distributions. A SEC example shows that an 8% index gain can translate into a 53% loss for a 3x daily fund over four months. The funds warn that the entire investment could be lost in a single day. Even if Bitcoin recovers to its entry price, a daily-reset leveraged fund may remain underwater because its promise covers only the daily performance.
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Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
