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Cboe seeks SEC approval for 3x Bitcoin and Ethereum futures ETFs

The Aug. 10 filing would reset leverage daily, so longer term results would depend on the sequence of futures moves, roll costs, and rebalancing.

Reported · Written up by our desk · Market Structure

Cboe BZX has asked the SEC for a case by case exception to its own listing rules to launch exchange traded funds targeting three times the daily performance of Bitcoin and Ethereum futures, rather than holding the tokens directly, according to CryptoSlate.

The Aug. 10 proposal covers six Volatility Shares funds tied to Bitcoin, Ethereum, gold, silver, crude oil, and natural gas, using futures traded primarily on CME. The filing remains pending, and an Aug. 14 SEC notice said the funds registration statement was not yet effective and the shares were not authorized for trading.

CryptoSlate reports that the products would reset leverage every trading day, meaning longer term returns would depend on the sequence of daily moves in the underlying futures, plus futures performance, costs, and rebalancing.

The filing says the funds would operate within Cboe's commodity trust framework, but Cboe is using a Section 19(b) proposal because its normal commodity trust route would not apply when seeking a multiple of a benchmark under BZX rules. Volatility Shares LLC would sponsor the funds within a VS Trust, with US Bancorp Fund Services as transfer agent, fund accountant, and administrator, and US Bank National Association as custodian.

Latest closeGold $4,432.00 ▲1.6%|Silver $64.83 ▼0.1%|WTI crude $82.40 ▲1.4%

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