Cboe Seeks SEC Approval for High-Volatility 3x Crypto ETFs
Cboe BZX has filed with the SEC to launch three-times leveraged Bitcoin and Ethereum ETFs, which could expand the market for high-volatility crypto products.
The proposal includes six new funds: a 3x BTC ETF, a 3x ETH ETF, a 3x Gold ETF, a 3x Silver ETF, a 3x Crude Oil ETF, and a 3x Natural Gas ETF. These funds will operate under VS Trust, with Volatility Shares LLC as the sponsor.
The Bitcoin fund aims to triple the daily movement of Bitcoin futures, while the Ethereum fund will track three times the daily return of CME ETH futures. The inclusion of triple leverage is the primary reason for the SEC approval request, as existing BZX standards do not allow for automatic listing when a fund targets a predetermined multiplier of a benchmark's performance.