Cboe Files With SEC to List First U.S. 3x Leveraged Bitcoin and Ether ETFs
AI Market Summary
Cboe BZX has filed for SEC approval to list U.S. 3x daily leveraged Bitcoin and Ether ETFs, alongside similar products for gold, silver, oil, and natural gas. If approved, these futures-based commodity-pool vehicles could expand tactical access and hedging tools, potentially increasing short-term flow sensitivity and volatility around BTC and ETH. The proposal requires a special rule change due to leverage limits under standard ETF listing rules.
Impact level
● High
Affected assets
BTC/USDT-0.85%
AI Insight · BTC/USDTAI Insight
● Neutral
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Cboe BZX Exchange has asked the U.S. Securities and Exchange Commission to approve the listing of a new lineup of leveraged commodity exchange-traded funds, including daily 3x long exposure products tied to Bitcoin and Ethereum, ME News reported.
In a proposed rule change submitted on Friday, Cboe said it plans to list six funds: a 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil ETF, and 3x Natural Gas ETF. The products are designed to deliver three times the daily performance of their respective benchmarks, primarily through futures positions on CME or COMEX supported by cash and cash equivalents.
Because the proposed ETFs fall outside the exchange's standard listing limits for leveraged instruments, Cboe is seeking authorization via a special rule filing. The filing notes that 3x leveraged funds are generally aimed at sophisticated investors for short-term tactical trading and are not intended for long-term buy-and-hold strategies.
Cboe also said the funds would be structured as "commodity pools" overseen by the Commodity Futures Trading Commission, rather than as investment companies regulated under the Investment Company Act of 1940, which covers many traditional ETFs. Commodity pools typically combine investor capital to trade derivatives and other commodity-related instruments. (Source: ChainCatcher)
