Cboe filed for six leveraged ETFs, including 3x Bitcoin and Ether funds sponsored by Volatility Shares. The proposed funds would use CME Bitcoin and Ether futures rather than holding the unde
Cboe BZX Exchange has asked the U.S. Securities and Exchange Commission to approve six leveraged ETFs, including 3x Bitcoin and Ether funds. The exchange filed the proposal on August 10, while the SEC published its notice August 14. The proposed crypto funds would seek three times the daily performance of Bitcoin and Ether through futures.
According to the filing, Volatility Shares LLC would sponsor the six funds through the VS Trust. The lineup includes 3x Bitcoin, Ether, Gold, Silver, Crude Oil and Natural Gas ETFs.
The Bitcoin fund would primarily use CME Bitcoin futures, while the Ether fund would primarily use CME Ether futures. Neither fund would directly hold Bitcoin or Ether under the proposed structure.
Each fund would use futures, with cash and cash equivalents as collateral. However, separate SEC approval is required because leveraged products fall outside Cboe's generic listing standards.
The funds would operate as commodity pools rather than traditional investment companies under the 1940 Act. Their sponsor would face oversight from the Commodity Futures Trading Commission and National Futures Association.
The products would reset exposure daily. Therefore, the 3x target applies to one trading day, not cumulative returns over longer periods. Investors would create and redeem shares through cash transactions involving Creation Units.
Each unit would generally contain 10,000 shares. The funds would calculate net asset value daily and publish indicative values every 15 seconds. Cboe cited regulated futures markets and existing surveillance arrangements in the filing.
The SEC's August 14 notice starts the review process but does not approve the proposed ETFs. The commission will seek public comments after Federal Register publication. The SEC generally has 45 days to act initially. However, the review can extend to 90 days.
Cboe said it had not received comments before submitting the proposal. Meanwhile, Volatility Shares already offers 2x Bitcoin and Ether strategy ETFs in the U.S. LeverageShares launched 3x and negative 3x Bitcoin and Ether ETFs in Europe last year.
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