The U.S. Securities and Exchange Commission is reviewing a proposed rule change filed by Cboe BZX Exchange for six leveraged commodity exchange-traded funds designed to deliver three times the daily performance of their respective benchmarks. The products were launched by Volatility Shares LLC and cover gold, silver, Bitcoin, Ether, crude oil, and natural gas. According to the filing details cited by ChainCatcher, the SEC’s initial review period runs for 45 days after publication in the Federal Register. The Bitcoin and Ether funds would invest primarily in front-month and second-month futures contracts listed on the Chicago Mercantile Exchange rather than holding spot Bitcoin or Ether directly. They would also hold cash and cash equivalents for collateral or margin purposes. Before any of the funds can list, the SEC must approve the exchange’s proposed rule change, and the trusts’ Form S-1 registration statements must become effective. Each fund must have at least 100,000 shares outstanding at listing, and authorized participants would be able 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 covering six leveraged commodity exchange-traded funds that seek to deliver three times the daily performance of their benchmarks, according to ChainCatcher.
The SEC’s initial review window is 45 days from 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 intended to operate as commodity pools rather than investment companies.
For the Bitcoin and Ether products, the funds would primarily invest in front-month and second-month futures contracts traded on the Chicago Mercantile Exchange instead of directly holding Bitcoin or Ether. They would also hold cash and cash equivalents to meet collateral or margin requirements.
Before the products can begin trading, the SEC must approve the exchange rule change, and the trusts’ Form S-1 registration statements must also become effective. Each fund must have at least 100,000 shares outstanding at the time of listing. Authorized participants would be allowed to create or redeem shares in cash in blocks of 10,000.
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