Cboe seeks SEC approval for 3x Bitcoin and Ether ETF

Exchange operator Cboe BZX Exchange has filed an application with the US securities regulator SEC to list and trade triple-leveraged ETFs on Bitcoin and Ethereum. The funds in question come from Volatility Shares and aim to track three times the daily performance of Bitcoin and Ether via futures. The application, submitted on 10 August, has not yet been approved. If the SEC gives its consent, these would be the first triple-leveraged Bitcoin and Ether ETFs in the United States.

In brief:

• Cboe is asking the SEC for approval of 3x leveraged Bitcoin and Ether ETFs from Volatility Shares.
• The funds use CME futures to achieve three times the daily price performance.
• The same application also covers 3x ETFs on gold, silver, crude oil and natural gas.

Separate approval required due to Cboe’s own rules

Because Cboe’s own listing rules normally prohibit leveraged products, the exchange cannot admit these ETFs under the standard procedure. That requires a separate decision from the SEC, meaning the application proceeds via a special rule change.

The two funds plan to use CME Bitcoin and Ether futures to achieve their investment objective. Triple-leveraged ETFs are riskier than regular or single-leveraged funds, because losses on a daily basis are also multiplied.

Commodities also included in the application

In addition to the crypto ETFs, the same filing with the SEC also includes triple-leveraged funds linked to gold, silver, crude oil and natural gas. This concerns a broader range of products aimed at investors seeking more exposure to commodities and digital assets.

The SEC published an official notice of the submitted rule change on 14 August. A timeline for a decision has not yet been announced. Earlier, the Bitcoin ETF market showed fluctuations in demand and outflows, which puts interest in new ETF variants into context.