Cboe BZX Seeks Approval for Leveraged Bitcoin and Ether ETFs with Daily Reset
A leveraged Bitcoin ETF does not triple your gain over the holding period; it triples the move of a single trading day, according to documents filed by Cboe BZX in the US Federal Register on August 19, 2026. The exchange seeks approval for six funds, including two that track Bitcoin and Ether, which are designed to deliver three times the daily performance of their underlying assets.
The leverage is reset every evening through a process called the daily reset or rebalancing, where the exposure is adjusted so that it again equals exactly three times the current fund assets. This means that when the price rises, the product buys more, and when the price falls, it cuts back, mechanically, without any view on the market.
The result of this process is that your return over a week or a month is the result of a chain of daily returns multiplied together, which does not equal three times the underlying's return over the same period. This property is called path dependence and has significant implications for investors.