The SEC just approved 3x leveraged bitcoin and ether ETFs — the first in U.S. history. The dollar is at an 18-month high and bitcoin is holding. And 786K ETH is stuck in a two-week exit line.
Monday, October 5, 2026
The SEC approved the first-ever 3x leveraged bitcoin and ether ETFs on Thursday. They can’t trade yet — the issuer still needs registration approval — but the principle is established. The Dollar Index hit an 18-month high of 102.5 this morning and bitcoin is holding firm, continuing to defy the macro headwind. In Ethereum, the MetaMask-driven staking exit surge has left around 786,000 ETH worth over $2 billion in a queue with a two-week wait. Traders are also pricing out an October Fed hike following Friday’s softer jobs data. Stay alert.
The SEC just approved 3x leveraged bitcoin and ether ETFs
The SEC approved a Cboe rule change on October 2 allowing six Volatility Shares ETFs to deliver three times the daily return of bitcoin, ether, gold, silver, crude oil and natural gas — the first time 3x crypto leverage has been permitted in the U.S., where funds had previously been capped at 2x. The products can’t trade yet as the issuer still needs registration approval, and no deadline was set. These funds hold regulated futures, not spot tokens, and must rebalance daily to keep leverage pinned at 3x, which creates mechanical buying after gains and selling after losses near the close. That daily reset also means multi-day returns can deviate sharply from 3x, and in a sideways market, volatility decay bleeds capital: if bitcoin gains 10% one day and loses 10% the next, a 3x fund ends down 9% while spot ends down 1%. Volatility Shares’ own prospectus warns the fund “is not suitable for all investors” and carries risk of total loss.
The dollar is at an 18-month high — and bitcoin is holding firm
The U.S. Dollar Index hit roughly 102.5 Monday, its highest level since April 2025, rising from near 99 in early September on the back of 19-year highs in Treasury yields and the Fed’s September rate hike. A stronger dollar typically pressures risk assets by raising the cost of dollar-denominated debt and making bonds more attractive — but bitcoin is holding near $86,000, extending a pattern of relative resilience. The euro has dropped to a 17-month low near $1.11 as fiscal concerns in France and Spain’s snap election weigh on sentiment, accounting for the bulk of the DXY move given the euro’s 57.6% weight in the index. Markets are now pricing out an October Fed hike following Friday’s weaker-than-expected nonfarm payrolls, with yields edging lower in response — a modest but meaningful tailwind for bitcoin heading into the week.
Ethereum has a 25-day wait to start staking — with nearly 1.5 million ETH in line
The ETH staking exit queue jumped more than fivefold in three days last week — from 166,000 ETH to roughly 851,000 ETH — after MetaMask began withdrawing validators as a precaution following its September 30 security incident. About 786,000 ETH (worth just over $2 billion) remained in the exit queue as of Monday, with a wait of nearly 14 days, as Ethereum’s protocol limits exits to around 57,600 ETH per day to protect network stability. MetaMask found no evidence of wallet or customer fund exposure; Lido expects affected validators to finish exiting by October 7, after which coins will gradually re-enter staking over a process that could take up to 45 days. Separately, demand to enter staking has been cooling: 1.5 million ETH was in the entry queue Monday with an estimated 25-day wait, down from 2 million ETH and a 35-day wait in early September.
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