Cboe Seeks Approval for 3x Bitcoin and Ether ETFs

Cboe BZX Exchange has submitted a proposed rule change to list six leveraged commodity-linked products, including 3x Bitcoin and Ether ETFs. The funds would seek three times the daily performance of their respective benchmarks before fees and expenses.

The proposed funds would primarily use regulated futures contracts traded on the Chicago Mercantile Exchange, rather than direct holdings of Bitcoin or Ether. This structure allows for greater leverage without exposing investors to the risks associated with holding physical cryptocurrency.

The SEC has published notice of the filing, but the products have not been approved for trading yet. Cboe is seeking special approval through a Section 19(b) rule filing due to the funds' daily-resetting nature and their aim for three times their benchmarks' daily performance.