Cboe Seeks Approval for First US Triple-Leveraged Bitcoin and Ether ETFs

Cboe BZX Exchange has filed a proposal with the SEC to list and trade two new leveraged exchange-traded funds (ETFs) tied to Bitcoin and Ether. The proposed ETFs, which would be the first triple-leveraged BTC and ETH products on a major US exchange, aim to deliver three times the daily performance of their underlying assets.

To achieve this goal, the funds plan to rely primarily on CME futures contracts, specifically CME Bitcoin futures and CME Ether futures. The structure involves holding cash collateral to support the futures positions day-to-day.

Notably, the timing of this proposal coincides with a period of cooling spot demand for BTC ETFs, which have posted net outflows for three consecutive days. In contrast, Ether funds have shown no clear directional pull from investors during this time.

The SEC will need to approve Cboe's proposed rule change before either fund can trade on the exchange. The application also covers 3x leveraged ETFs tied to gold, silver, crude oil, and natural gas, but regulators have yet to make a decision on these products as well.