The virtual asset market is closely watching moves by the United States to expand regulated products and improve institutional investors' access to the market. While new leveraged products based on Bitcoin (BTC) and Ethereum (ETH) have taken a step forward in the U.S., legislative uncertainty surrounding the virtual asset market structure remains, meaning positive catalysts and cautionary factors are at work simultaneously.

SEC Approves Cboe BZX Rule Change for 3x Leveraged ETP Listing

On October 2, the U.S. Securities and Exchange Commission (SEC) approved a rule change proposed by Cboe BZX for the listing and trading of 3x leveraged exchange-traded products (ETPs) based on Bitcoin and Ethereum. The SEC's approval order included a total of six products, including 3x Bitcoin ETF and 3x Ether ETF, as well as 3x leveraged products based on gold, silver, crude oil, and natural gas.

Within the virtual asset market, this can be interpreted as a signal that investment vehicles for institutional access to Bitcoin and Ethereum are becoming more diverse. However, it should be noted that this decision does not mean the products will begin trading immediately. According to related reports, a separate registration process remains before actual trading can begin.

Leveraged Products: A Double-Edged Sword of Amplified Gains and Losses

The inherent characteristics of 3x leveraged products are also a variable. Unlike simply holding Bitcoin or Ethereum spot, these products are designed to pursue roughly three times the daily price movement of the underlying asset. While returns can be magnified in a rising market, losses can also grow rapidly when prices move in the opposite direction.

Custody Rule Proposal vs. Stalled Market Structure Legislation

The U.S. regulatory environment for virtual assets is not moving in only one direction. The SEC recently proposed new rules to address the custody of virtual assets by investment advisers and funds within a clearer regulatory framework. This can be seen as a move to clarify the regulatory pathway through which mainstream financial institutions and investment professionals can handle virtual assets.

In contrast, comprehensive market structure legislation at the U.S. congressional level has stalled. In September, the U.S. Senate failed to secure the necessary votes in a procedural step to advance the Digital Asset Market Clarity Act, which addresses virtual asset market structure. As a result, broader institutional uncertainty—including the respective roles of the SEC and the Commodity Futures Trading Commission (CFTC), and the rules that would apply to market participants—has not been fully resolved.

Ultimately, two trends are currently appearing simultaneously in the U.S.: 'expanded product accessibility' and 'delayed market structure legislation.'

Ethereum and Stablecoins Also Key Variables

The market is also paying attention to Ethereum's movements. With growing interest in Ethereum-related investment products and institutional fund flows—not just Bitcoin—a key point of interest is whether institutional investors' focus can broaden from a BTC-centered market to include ETH.

Stablecoins are another variable that cannot be overlooked. Discussions on stablecoin issuance, regulation, and cross-border services are ongoing not only in the U.S. but also in Europe. Since stablecoins are widely used not only for liquidity in virtual asset trading but also for payments and on-chain financial activities, regulatory changes could have a significant impact on the overall market.

Selective Market Reaction... Caution Urged in Evaluating Short-Term Strength in Mid- and Small-Cap Coins

Price movements are far from a uniform rally driven solely by policy tailwinds. Even among major virtual assets such as Bitcoin, Ethereum, BNB, and Solana (SOL), performance has diverged, indicating that the market's response to regulatory and product approval news is unfolding selectively.

Among mid- and small-cap coins, some tokens such as GLMR, QI, and The Sandbox (SAND) showed relatively strong movements, but short-term gains in individual mid- and small-cap virtual assets alone make it difficult to judge a broader expansion of risk appetite across the market. Tokens with relatively low liquidity can experience larger price swings.

October 4 Market Keywords: 'Expanded Institutional Access' and 'Coexistence with Regulatory Uncertainty'

In short, the key themes for the virtual asset market on October 4 can be summarized as 'expanded institutional access' and 'the coexistence of regulatory uncertainty.' The SEC's approval related to 3x leveraged Bitcoin and Ethereum products is significant in that it shows the scope of regulated financial products utilizing virtual assets is broadening. On the other hand, the fact that comprehensive market structure legislation in the U.S. Congress has yet to be finalized remains a variable the market must continue to monitor.

In particular, whether the expansion of leveraged products leads to actual new inflows of capital, and whether institutional interest spreads from Bitcoin to Ethereum and other large-cap virtual assets, are expected to be key points of focus for gauging the next market trend.

[Virtual assets and leveraged products carry high price volatility and the risk of principal loss, and market outlooks may not align with actual price movements. This article does not recommend the purchase or sale of any specific virtual asset or financial product, and the final investment decision and responsibility rest with the investor. This article was written with the assistance of AI in drafting and editing.]