The U.S. Securities and Exchange Commission is reviewing a proposed rule change filed by Cboe BZX Exchange for the listing of six leveraged commodity exchange-traded funds that aim to deliver three times the daily performance of their underlying benchmarks. The products, sponsored by Volatility Shares LLC, cover gold, silver, Bitcoin, Ether, crude oil, and natural gas.
According to the filing details cited in the report, the SEC’s initial review period runs for 45 days after publication in the Federal Register. The funds are structured to operate as commodity pools rather than investment companies. For the Bitcoin and Ether products, the investment strategy would focus primarily on front-month and second-month futures contracts traded on the Chicago Mercantile Exchange, instead of holding spot Bitcoin or Ether directly. The funds would also hold cash and cash equivalents for collateral or margin purposes.
Before any of the products can begin trading, the SEC must approve the exchange’s proposed rule change, and the trusts’ Form S-1 registration statements must become effective. Each fund would also need to launch with at least 100,000 shares outstanding, while authorized participants would be allowed to create or redeem shares in cash in blocks of 10,000.
The U.S. Securities and Exchange Commission is reviewing a proposed rule change submitted by Cboe BZX Exchange for the listing of six leveraged commodity exchange-traded funds designed to track three times the daily move of their respective benchmarks.
The SEC’s initial review window is 45 days after publication in the Federal Register. The funds are sponsored by Volatility Shares LLC and include 3x gold, silver, Bitcoin, Ether, crude oil, and natural gas ETFs. All of them are proposed to operate as commodity pools rather than as investment companies.
Bitcoin and Ether funds would use CME futures
For the Bitcoin and Ether products, the filing says the funds would primarily invest in front-month and second-month futures contracts listed on the Chicago Mercantile Exchange (CME), instead of directly holding Bitcoin or Ether. They would also keep cash and cash equivalents to serve as collateral or margin.
Two regulatory steps remain before listing
Before the products can be listed, the SEC must approve the exchange rule change, and the trusts’ Form S-1 registration statements must become effective. Each fund must have at least 100,000 shares outstanding at the time of listing, and authorized participants would be able to create or redeem shares for cash in blocks of 10,000.
The report cited Bitcoin.com News as the source.
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