As a result, the exchange must pursue a specific rule-change process under Section 19(b) of the Securities Exchange Act rather than relying on streamlined pathways available for non-leveraged offerings.
Cboe has indicated it will also file related registration statements under the Securities Act of 1933.
The structure positions the funds as commodity pools regulated primarily by the Commodity Futures Trading Commission (CFTC) rather than as traditional investment companies subject to the Investment Company Act of 1940.
This approach adds an extra layer of federal oversight compared with physical commodity-based exchange-traded products.
Leveraged ETFs of this type are generally intended for short-term tactical use by sophisticated traders rather than long-term holdings.
Their daily reset mechanism means that returns over multi-day periods can diverge substantially from a simple multiple of the underlying asset’s performance, especially in volatile markets.
Volatility Shares already offers double-leveraged bitcoin and ether products in the United States, so the new filings represent an extension of that product lineup to higher leverage levels.
Market observers note that the proposal arrives amid a broader expansion of crypto-related investment vehicles in the US, following the earlier approval of spot bitcoin and ether ETFs and subsequent developments in options trading on those products.
The SEC’s review process for the rule change typically involves a public comment period and a decision window that can extend to 45 days or longer after notice publication in the Federal Register.
Approval is not guaranteed.
Regulators will examine factors such as investor protection, market integrity, potential for manipulation, and the operational readiness of the proposed products.
Even if the exchange rule change receives clearance, trading cannot begin until the associated registration statements become effective.
The move underscores continued innovation in the regulated derivatives and ETF space as exchanges and sponsors seek to offer investors more tools for gaining exposure to digital assets and traditional commodities. For now, the filings remain under review, with no confirmed timeline for a final decision or potential launch.
