Cboe BZX Exchange has asked the U.S. Securities and Exchange Commission for approval to list a new set of leveraged commodity exchange-traded funds, including daily 3x long products tied to Bitcoin and Ether. In a proposed rule change filed on Friday, the exchange outlined plans for six funds: 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil ETF, and 3x Natural Gas ETF. According to the filing, the funds would seek to deliver three times the daily performance of their reference assets, mainly by holding futures contracts traded on CME or COMEX and posting cash and cash equivalents as collateral. Because the products do not meet the exchange’s generic listing standards for leveraged products, Cboe is seeking approval through a special rule process. The filing also says the funds would be structured as commodity pools regulated by the Commodity Futures Trading Commission, rather than as 1940 Act investment companies overseen by the SEC. Commodity pools typically combine capital from multiple investors to trade derivatives or other commodity-linked instruments.
Cboe BZX Exchange is seeking approval from the U.S. Securities and Exchange Commission to list a group of leveraged commodity ETFs, including daily 3x long Bitcoin and Ether products.
Six proposed leveraged commodity ETFs
In a proposed rule change filed on Friday, Cboe said it plans to launch the 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 aim to deliver three times the daily return of the underlying assets. They would do so mainly by holding futures contracts listed on CME or COMEX, while using cash and cash equivalents as collateral.
Special approval request tied to listing standards
Cboe said the proposed products do not fit within the exchange’s generic listing standards for leveraged products, which is why the exchange is requesting approval through a special rule change.
These high-leverage funds are generally designed for sophisticated investors and short-term tactical trading, rather than long-term holding.
Commodity pool structure under CFTC oversight
The filing also shows that the funds would operate as commodity pools and be regulated by the Commodity Futures Trading Commission, instead of being structured like many traditional ETFs as SEC-regulated investment companies under the Investment Company Act of 1940.
Commodity pools typically bring together money from multiple investors to trade derivatives or other instruments linked to commodities.
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