Key Insights: Cboe filed to list Volatility Shares 3x Bitcoin and Ether ETFs. The proposed funds would target three times daily asset performance. SEC approval is required before Cboe can lis
Cboe BZX Exchange filed to list proposed 3x Bitcoin and Ether exchange-traded funds from Volatility Shares.
The products would target three times their reference assets’ daily performance before fees and expenses. That daily objective matters because leveraged returns can diverge substantially over longer holding periods.
Volatility Shares LLC would sponsor the funds through VS Trust. The proposed lineup also covers gold, silver, crude oil and natural gas.
Under the proposal, each fund would pursue a 3x daily objective tied to its designated benchmark. Bitcoin and Ether funds would primarily use first- and second-month futures contracts trading on the CME.
Cboe Proposal | Source: SEC Meanwhile, the gold and silver products would use futures contracts trading primarily on COMEX. The crude oil and natural gas funds would also seek three times their underlying assets’ daily performance.
Notably, the products would not hold physical Bitcoin, Ether, gold, silver, crude oil, or natural gas. Instead, they would mainly hold benchmark futures alongside cash and cash equivalents used for margin or collateral. The sponsor would adjust futures positions as share purchases, redemptions, and benchmark values change. Those adjustments would help each fund maintain its stated daily investment objective.
Additionally, the filing allows alternative instruments when benchmark futures become unavailable under specified market or position constraints. Those instruments can include longer-dated futures, linked ETFs, linked exchange-traded products, and listed options. The filing therefore sets a process for maintaining daily exposure when primary benchmark contracts become unavailable.
The six funds fall outside Cboe BZX’s generic listing standards for commodity-based trust shares. BZX Rule 14.11(e)(4)(F) prohibits products seeking returns through a specified leverage multiple. Since each fund targets 3x daily returns, Cboe must obtain specific SEC approval through the proposed rule change.
At the same time, the funds would operate as commodity pools under Commodity Futures Trading Commission oversight. They would not register as investment companies under the Investment Company Act of 1940. Volatility Shares LLC would act as sponsor and commodity pool operator for VS Trust.
Moreover, the trust would file a Form S-1 registration statement under the Securities Act of 1933. The registration must become effective before shares can begin trading on the exchange. Cboe also argues that CFTC oversight adds federal regulation beyond physical commodity-based exchange-traded products.
The proposal would extend leveraged cryptocurrency exchange-traded products beyond existing lower-multiple structures.
Cboe 2nd Quarter Report | Source: Cboe Its regulatory treatment will therefore provide another test of how far U.S. exchanges can expand leveraged cryptocurrency exposure.
Cboe Global Markets separately reported stronger second-quarter results before the filing. The company reported adjusted earnings of $3.56 per share and approximately $732 million in net revenue.
Those corporate results provide context on Cboe’s broader business, but they do not directly support the investment case or regulatory prospects for these ETFs. I would either keep them to one short paragraph or remove that section entirely.
The central story remains the regulatory filing. Until the Securities and Exchange Commission acts, the 3x Bitcoin and Ether ETFs remain proposed products rather than approved U.S. listings.
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