Cboe BZX Files with SEC to List 3x Leveraged Bitcoin and Ether ETFs

Cboe BZX has filed a proposed rule change with the U.S. Securities and Exchange Commission to list 3x leveraged ETFs covering six assets, including bitcoin (BTC) and ether (ETH). The filing was submitted on August 10 and published by the SEC on August 14. If approved, these would be the first 3x leveraged crypto ETFs to list on U.S. markets.

The funds will be managed by Volatility Shares, a U.S. asset manager that already operates 2x leveraged bitcoin and ether ETFs listed on Cboe BZX. This latest filing represents an extension of that existing product lineup.

Futures-Based Structure, No Spot Holdings

The funds will not directly hold spot crypto assets. The bitcoin and ether ETFs will primarily invest in front-month and next-month futures contracts listed on CME (Chicago Mercantile Exchange), while the gold and silver ETFs will reference COMEX futures, and the crude oil and natural gas ETFs will reference NYMEX futures. The funds will hold cash and cash equivalents as collateral.

The benchmark futures contracts roll from the front month to the next month over a five-business-day period. Each business day, approximately 20% of positions nearing expiration are rolled, and the associated costs, along with the divergence between futures and spot prices, will affect fund performance.