Cboe BZX Exchange has asked the U.S. Securities and Exchange Commission for permission to list a new group of leveraged commodity exchange-traded funds, including daily 3x long Bitcoin and Ether products. Under a proposed rule change filed on Friday, the exchange plans to launch six funds: 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil ETF, and 3x Natural Gas ETF. The filing says the funds would mainly gain exposure through CME or COMEX futures contracts while using cash and cash equivalents as collateral, with the goal of delivering three times the daily return of the underlying assets. Because the products do not meet the exchange’s standard listing criteria for leveraged funds, Cboe is seeking approval through a special rule process. The filing also states that the funds would operate as commodity pools regulated by the Commodity Futures Trading Commission rather than as Investment Company Act of 1940 vehicles overseen by the SEC. Such high-leverage products are typically designed for experienced investors and short-term tactical trading, not long-term holding.
Cboe BZX Exchange is seeking U.S. Securities and Exchange Commission approval to list a slate of leveraged commodity ETFs, including daily 3x long Bitcoin and Ether funds.
Proposed lineup in the filing
According to a proposed rule change filed on Friday, Cboe plans to list the 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil ETF, and 3x Natural Gas ETF.
How the funds would work
The filing says the products would mainly hold CME or COMEX futures contracts and use cash and cash equivalents as collateral, aiming to deliver three times the daily performance of the underlying assets.
Why Cboe needs special approval
Because the proposed products do not fit within the exchange’s standard listing limits for leveraged funds, Cboe is asking for approval through a special rule change.
These high-leverage funds are generally intended for sophisticated investors and short-term tactical trading, and are not suitable for long-term holding.
Regulatory structure
The filing also shows the funds would operate as commodity pools regulated by the Commodity Futures Trading Commission, rather than as SEC-regulated Investment Company Act of 1940 funds like many traditional ETFs. Commodity pools typically combine capital from multiple investors to trade derivatives or other commodity-linked instruments.
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