Cboe Seeks SEC Approval for 3x Bitcoin and Ethereum ETFs Amid 2x Fund Losses

Cboe BZX has filed a proposal with the Securities and Exchange Commission (SEC) to list six Volatility Shares funds tied to Bitcoin, Ethereum, gold, silver, crude oil, and natural gas. These funds would use futures traded primarily on CME, rather than holding the underlying assets directly.

The proposed funds would reset leverage every trading day, making longer-term returns dependent on daily moves, futures performance, costs, and rebalancing. This structure introduces risks beyond the direction of Bitcoin or Ethereum itself, including futures basis, roll execution, financing, expenses, and tracking error.

Cboe needs a specific exemption from its own generic listing rules to list these funds. The current rule excludes products seeking a multiple of a benchmark, which is what these funds would do with their 3x leverage target. By filing under Section 19(b), Cboe is seeking case-specific SEC approval for the six Volatility Shares funds.