Cboe Seeks SEC Approval for Triple-Exposure Bitcoin and Ether ETFs

Cboe BZX Exchange has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to list six leveraged commodity exchange-traded funds, including three times Bitcoin and ether ETFs.

The proposed ETFs would offer investors triple-exposure bitcoin and ether exchange-traded products, making them the first 3x bitcoin and ether ETFs in the U.S. market.

Cboe's proposal includes 3x Bitcoin and 3x Ether funds, which require specific regulatory approval due to their leveraged nature. The proposed ETFs are structured as commodity pools overseen by the Commodity Futures Trading Commission (CFTC), rather than traditional 1940 Act investment companies supervised by the SEC.

The sponsor of the funds is Volatility Shares LLC, which already offers 2x bitcoin and ether strategy ETFs in the U.S. market. LeverageShares launched similar products with higher leverage in Europe last year, making Cboe's proposal a potential game-changer for U.S. investors if regulators approve it.