Cboe Applies to Launch First US 3x Leveraged Bitcoin and Ethereum ETFs

TechFlow news, August 15, according to The Block, the BZX Exchange under the Chicago Board Options Exchange (Cboe) has filed a proposed rule change application with the U.S. Securities and Exchange Commission (SEC), seeking to list and trade 3x leveraged Bitcoin and Ethereum ETFs, while simultaneously applying to launch 3x gold, silver, crude oil, and natural gas funds. These funds aim to achieve 3x the daily return of their respective underlying assets by holding futures contracts on the Chicago Mercantile Exchange (CME) or the Commodity Exchange (COMEX). Notably, these funds will operate as "commodity funds," regulated by the U.S. Commodity Futures Trading Commission (CFTC), rather than traditional 1940 Act investment companies regulated by the SEC. Due to seeking leveraged returns, they do not meet the exchange's general listing standards and require specific approval from the SEC. Documents show that the series of funds will be initiated by Volatility Shares LLC and join the VS Trust. Previously, Volatility Shares has already launched 2x leveraged Bitcoin and Ethereum strategy ETFs in the United States.