Cboe Files with SEC: No Trading Authorization Yet for US’s First 3x Bitcoin and Ether ETFs

Cboe BZX Exchange has filed a proposed rule change with the SEC to list the first 3x leveraged Bitcoin and Ether ETFs in the US; approval for the funds to begin trading has not yet been received.

The US Securities and Exchange Commission (SEC) has published the notice regarding Cboe BZX’s filing. The application is not limited solely to crypto assets; it also covers the listing of new ETFs targeting 3x daily performance for gold, silver, crude oil, and natural gas. Thus, Cboe is seeking regulatory approval to offer this product suite in the US market.

The planned 3x Bitcoin ETF and 3x Ether ETF will target three times the daily performance of the underlying asset. The funds will achieve this objective primarily through futures contracts traded on the CME or COMEX; cash and cash equivalents will be held as collateral. To maintain the daily target, the number of contracts held by the funds will be increased or decreased based on investor trades and changes in the value of the underlying asset.

3x Bitcoin and Ether ETFs Awaiting Special Approval

Since leveraged products fall outside the restrictions in Cboe BZX’s general listing standards, the application requires special SEC approval. Cboe will also submit a Form S-1 registration statement under the US Securities Act. Therefore, the filing does not signify immediate trading authorization.

The funds will be structured as commodity pools under CFTC oversight, rather than investment companies under the SEC-regulated 1940 Act like traditional ETFs. Volatility Shares will be the fund sponsor, and the products will be offered under the VS Trust umbrella. The company already operates 2x Bitcoin and Ether strategy ETFs in the US. In Europe, LeverageShares launched the first 3x and -3x Bitcoin and Ether ETFs last year. Triple leverage makes these products more suitable for the short-term and tactical trading of experienced investors rather than long-term savings.