Cboe Seeks 3x Bitcoin and Ethereum ETFs After 2x Funds Suffer 96% Losses

Cboe BZX is asking the Securities and Exchange Commission (SEC) for an exception to its own generic listing rules so it can list funds targeting three times the daily performance of Bitcoin and Ethereum futures.

The Aug. 10 proposal covers six Volatility Shares funds tied to Bitcoin, Ethereum, gold, silver, crude oil and natural gas. The crypto products would use futures traded primarily on CME rather than hold BTC or ETH directly.

The filing remains pending. An SEC notice dated Aug. 14 said the funds' registration statement was not yet effective and the shares had not been authorized for trading.

The proposed funds would reset leverage every trading day, making longer-term returns dependent on the sequence of daily moves, futures performance, costs, and rebalancing rather than simply three times Bitcoin or ETH's return.

Cboe needs a specific exemption

The proposed funds do not qualify for Cboe's normal commodity-trust listing route because they seek three times the daily performance of their benchmarks.

BZX Rule 14.11(e)(4) allows qualifying Commodity-Based Trust Shares to list under generic standards, but Rule 14.11(e)(4)(F) specifically excludes products seeking a multiple of a benchmark. Cboe is therefore using a Section 19(b) filing to seek case-specific SEC approval for the six Volatility Shares funds.