Cboe BZX proposes 3x leveraged Bitcoin and Ethereum ETFs

Cboe BZX Exchange has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to list six new leveraged exchange-traded products. Sponsored by Volatility Shares LLC, the lineup includes funds targeting three times the daily performance of Bitcoin, Ethereum, gold, silver, crude oil, and natural gas.

To navigate SEC regulations that typically limit leverage to 200%, these products are structured as commodity pools under the Commodity Futures Trading Commission (CFTC) rather than traditional investment companies. This allows them to operate under the 1933 Securities Act. The funds would utilize futures contracts traded on the CME or COMEX rather than holding the underlying assets directly.

Institutional interest in crypto ETFs remains active. Recent filings show Edelman Financial Engines holds $34 million in Bitcoin ETFs, while JP Morgan has more than doubled its holdings of BlackRock’s iShares Bitcoin Trust. The SEC has begun its review process, with a decision expected within 45 to 90 days.