Cboe BZX Exchange has filed a proposed rule change with the Securities and Exchange Commission to list and trade Volatility Shares' 3x Bitcoin ETF and 3x Ether ETF. It's the first time Cboe has sought approval for leveraged crypto funds with a 3x multiplier.
What the funds would do
The two ETFs are designed to deliver three times the daily percentage change of their respective underlying assets. A 1% move in Bitcoin would translate to a 3% move in the fund on that day, and the same logic applies to the Ether version. Both funds would be issued by Volatility Shares.
Leveraged ETFs typically use derivatives and swaps to achieve that amplified exposure, resetting each trading day.
A first for Cboe
This is Cboe's first filing for 3x crypto ETFs. The proposal covers both a Bitcoin and an Ether fund, giving investors a way to bet on leveraged moves in either asset.
What happens next
The SEC will review the filing and open it to public comment once it's published in the Federal Register. After the comment period ends, the agency will decide whether to approve, reject, or extend its review. There's no set deadline for a final decision.
The comment period is the first chance for the public to weigh in on the proposal.
