Inside Cboe’s first 3x Bitcoin and Ether ETF filing and what comes next

Institutional demand across the crypto market has weakened, leaving investors hesitant and exchange-traded fund flows under pressure.

Despite these conditions, more ETF products are preparing to enter the market.

The SEC reported that Cboe BZX Exchange had filed a proposed rule change covering two Volatility Shares funds. These products included a 3x Bitcoin ETF and a 3x Ether ETF.

Could 3x Bitcoin and Ether ETFs launch?

According to the SEC filing, Cboe BZX Exchange sought approval to list several leveraged commodity-based funds.

The proposed lineup included 3x Bitcoin and Ether ETFs. It also covered products tracking gold, silver, and crude oil. If approved, the crypto funds could become America’s first triple-leveraged Bitcoin and Ethereum ETFs.

Both funds would primarily use CME Bitcoin and Ethereum futures. They would target three times their assets’ daily performance.

However, that leverage would reset daily. Returns over longer periods may differ significantly from three times the assets’ cumulative performance.

The funds would operate as commodity pools under the Commodity Futures Trading Commission’s framework.

Even so, Cboe’s proposed listing rule change still required SEC approval. Volatility Shares LLC would sponsor the funds, which would become a series of the VS Trust.