Cboe seeks SEC nod for 3x bitcoin and ether ETFs

Cboe BZX Exchange filed a proposed rule change with the SEC on Friday to list six leveraged commodity ETFs, including 3x bitcoin and 3x ether products — the first of their kind in the U.S.

"The Sponsor will increase and decrease the number of Benchmark Futures Contracts that each Fund holds in order to accommodate purchases and redemptions of Shares and to account for changes in the value of the Benchmark so that each Fund can meet its daily investment objective," the proposed rule change states.

The lineup spans 3x Gold, 3x Silver, 3x Bitcoin, 3x Ether, 3x Crude Oil and 3x Natural Gas ETFs, all designed to deliver three times the daily performance of their underlying assets primarily by holding futures contracts on CME or COMEX, with cash and cash equivalents as collateral. Because the funds seek leveraged returns, they fall outside the exchange's generic listing standards and require specific SEC approval. Cboe will also file a related Form S-1 registration statement under the Securities Act of 1933.

If approved, the products would mark the first 3x leveraged crypto ETFs available to U.S. investors, following LeverageShares' debut of the world's first 3x and -3x bitcoin and ether ETFs in Europe last year. Volatility Shares already offers 2x bitcoin and ether strategy ETFs in the U.S. market, and the new filing would extend that leverage ladder to triple exposure.

The proposed structure adds "an additional layer of federal regulatory oversight — beyond what a physical commodity-based exchange-traded product would be subject to," according to the filing. The commodity pool structure places the funds under CFTC jurisdiction, which regulates futures and derivatives markets, while the SEC retains authority over the listing and trading of the shares on Cboe BZX.

Highly leveraged funds are designed for short-term, tactical trading by sophisticated investors rather than long-term holding, the filing notes. The daily rebalancing mechanism resets each fund's exposure every trading day, which can lead to significant tracking divergence from the underlying asset over extended periods due to compounding effects.

What 3x leverage means for U.S. crypto investors

The approval process involves a public comment period followed by SEC review under the standard timeline for proposed rule changes. The related Form S-1 registration statement must also become effective before the funds can launch.

The 3x products would target a different investor profile than existing spot and 2x ETFs. While spot bitcoin ETFs have attracted long-term allocators and institutional investors, 3x leveraged products are typically used by active traders for short-term directional bets. The higher leverage amplifies both gains and losses, with daily rebalancing creating additional complexity for holders.

The filing also raises competitive questions for the broader crypto ETF market. LeverageShares' European debut of 3x and -3x bitcoin and ether ETFs last year demonstrated demand for high-leverage crypto products outside the U.S. If the SEC approves Cboe's proposal, other exchanges and issuers may accelerate their own leveraged crypto product pipelines. The approval would also mark a further step in the SEC's evolving stance on crypto derivatives, following the agency's earlier clearance of spot bitcoin and ether ETFs.

This article is for informational purposes only and does not constitute investment advice.