Cboe seeks SEC approval for 3x Bitcoin and Ethereum ETFs as 2x crypto funds post losses as steep as 96%
AI Market Summary
Cboe filed with the SEC to list six 3x leveraged BTC and ETH futures ETFs, highlighting renewed appetite for high-beta crypto exposure as ETF inflows recover and futures OI remains elevated. However, recent severe drawdowns in 2x products underscore path-dependent risks and potential volatility amplification. If approved, the structure could increase short-term futures demand and intraday volatility around roll mechanics.
Impact level
● Medium
Affected assets
BTC/USDT-0.28%
AI Insight · BTC/USDTAI Insight
● Neutral
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Cboe has filed with the U.S. Securities and Exchange Commission for approval of six 3x leveraged Bitcoin and Ethereum ETFs managed by Volatility Shares. The proposed products would track Bitcoin and Ether futures, primarily using front-month contracts and rolling roughly 20% of positions each day over a five-day window.
The push comes after sharp drawdowns in existing leveraged crypto funds. Volatility Shares' 2x leveraged Bitcoin ETF (BITX) posted a -78.93% net asset value return over the past year and a -29.76% return for the quarter.
Bitcoin futures open interest stands at $79 billion, while ETF inflows have begun to recover. If approved, the SEC would also address exchange-specific rule considerations tied to offering 3x leveraged products.
