Cboe Seeks SEC Approval for 3x Bitcoin and Ether ETFs

Cboe Global Markets has filed a proposal to list six new exchange-traded funds (ETFs) that would track three times the daily performance of Bitcoin, Ether, gold, silver, crude oil, and natural gas. The proposed ETFs would be listed on Cboe's BZX Exchange, but require SEC approval.

The funds, sponsored by Volatility Shares LLC, would use benchmark futures contracts to achieve their daily objective. They would not hold physical assets, instead using cash and cash equivalents for margin or collateral. If primary benchmark contracts become unavailable, the sponsor could adjust positions using alternative instruments such as longer-dated futures or listed options.

The ETFs fall outside Cboe's generic listing standards due to their 3x daily returns objective. As a result, Cboe must obtain specific SEC approval through a proposed rule change. The trust would also operate as a commodity pool under Commodity Futures Trading Commission oversight, not registering as an investment company under the Investment Company Act of 1940.

The proposal is part of Cboe's push to expand leveraged cryptocurrency exchange-traded products in the US market. This regulatory filing will test how far US exchanges can extend leveraged cryptocurrency exposure.