SEC Weighs Approval for First U.S. Leveraged Bitcoin and Ethereum ETFs

The U.S. Securities and Exchange Commission (SEC) has opened a public comment period on CBOE BZX Exchange's proposal to list six leveraged exchange-traded funds (ETFs), including three times the daily returns of Bitcoin and Ethereum.

CBOE BZX, the equities exchange arm of the Chicago Board Options Exchange, submitted a rule change proposal to list these ETFs. The filing marks a significant step in the integration of digital assets into mainstream financial products.

The leveraged structure aims to deliver daily returns that are three times the performance of the underlying asset, offering traders amplified exposure to price movements. However, leveraged ETFs carry heightened risk due to daily rebalancing and compounding effects, which can lead to unexpected losses over extended periods.