Cboe files for SEC approval of 3x bitcoin and ether ETFs

Cboe BZX Exchange has filed a proposed rule change with the SEC to list and trade 3x-leveraged bitcoin and ether ETFs, along with 3x gold, silver, oil, and gas funds. These funds aim to deliver three times the daily performance of their respective commodities by holding futures contracts, necessitating a special rule filing due to their non-compliance with the exchange's generic listing standards that prohibit leveraged products. The proposed suite includes a 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil ETF, and 3x Natural Gas ETF, primarily utilizing futures contracts on CME or COMEX, with cash as collateral. These highly leveraged funds are intended for short-term trading by sophisticated investors rather than long-term holding. The funds will operate as commodity pools under CFTC oversight, differing from traditional investment companies overseen by the SEC. The filing indicates that Volatility Shares LLC will sponsor the funds, which will be part of the VS Trust. Cboe will also submit a Form S-1 registration statement under the Securities Act of 1933. Volatility Shares currently offers 2x bitcoin and ether strategy ETFs in the U.S., while LeverageShares launched the first 3x and -3x bitcoin and ether ETFs in Europe last year.

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