Cboe Seeks SEC Approval for Leveraged Bitcoin and Ether ETFs

Cboe Global Markets has filed with the Securities and Exchange Commission (SEC) to list six new exchange-traded funds (ETFs), including two that target three times daily returns on Bitcoin and Ether.

The proposed Volatility Shares ETFs would use first- and second-month futures contracts trading on the Chicago Mercantile Exchange (CME) for Bitcoin and Ether, respectively. The gold and silver products would primarily use futures contracts trading on COMEX, while crude oil and natural gas funds would seek three times their underlying assets' daily performance.

The funds would not hold physical Bitcoin, Ether, or any of the other underlying assets but instead mainly hold benchmark futures alongside cash and cash equivalents used for margin or collateral. The sponsor, Volatility Shares LLC, would adjust futures positions as share purchases, redemptions, and benchmark values change to help each fund maintain its stated daily investment objective.