Cboe pushes for 3x Bitcoin and Ethereum ETFs after 2x crypto funds suffer losses of up to 96%
Cboe BZX is seeking SEC permission to list six Volatility Shares leveraged funds that would target 3x the daily performance of Bitcoin and Ethereum futures, plus gold, silver, crude oil, and natural gas. The crypto funds would not hold BTC or ETH directly; they would use CME-traded futures and reset leverage daily, so longer-term results would depend on price path, roll costs, financing, expenses, and tracking error, not just 3x the underlying move. The request is necessary because Cboe’s generic commodity-trust rules exclude funds seeking a multiple of a benchmark. SEC approval of the exchange-rule change would still not replace the separate requirement for an effective registration statement before trading can begin. Volatility Shares would sponsor the funds as commodity pools, with US Bancorp Fund Services and US Bank National Association handling administration and custody. The filing highlights that daily compounding can cause large performance gaps, making 3x products much riskier and more volatile than 2x versions already offered by Volatility Shares.
