Cboe BZX Exchange Seeks SEC Approval for Triple-Leveraged Crypto ETFs Targeting Bitcoin and Ether

Cboe BZX Exchange Seeks SEC Approval for Triple-Leveraged Crypto ETFs

August 2026 – In a bold move signaling the evolving landscape of cryptocurrency investments, Cboe BZX Exchange, part of Cboe Global Markets (Cboe: CBOE), has formally requested authorization from the U.S. Securities and Exchange Commission (SEC) to list and trade a new series of leveraged exchange-traded funds (ETFs). This groundbreaking proposal includes products designed to deliver three times the daily performance of popular cryptocurrencies Bitcoin and Ether, marking a potential first for U.S. investors.

The filing, submitted in early August, also encompasses similarly structured funds linked to traditional commodities such as gold, silver, crude oil, and natural gas. If approved, these leveraged crypto ETFs would provide investors with amplified daily exposure, primarily through futures contracts traded on the Chicago Mercantile Exchange (CME) or COMEX, with cash and cash equivalents serving as collateral.

Volatility Shares LLC is set to sponsor the new products, which will be organized as series under the VS Trust. However, the proposed funds fall outside Cboe’s existing generic listing standards for commodity-based trust shares, which typically prohibit leveraged products. Consequently, the exchange must navigate a specific rule-change process under Section 19(b) of the Securities Exchange Act, rather than utilizing the streamlined pathways available for non-leveraged offerings.

Cboe has indicated plans to file related registration statements under the Securities Act of 1933, positioning the funds as commodity pools regulated primarily by the Commodity Futures Trading Commission (CFTC). This regulatory framework adds an extra layer of oversight compared to traditional investment companies governed by the Investment Company Act of 1940.

Market analysts note that leveraged ETFs are generally intended for short-term tactical use by sophisticated traders rather than long-term investments. The daily reset mechanism inherent in these products means that returns over multi-day periods can diverge significantly from a simple multiple of the underlying asset’s performance, particularly in volatile market conditions.

Volatility Shares already offers double-leveraged Bitcoin and Ether products in the U.S., making this filing an extension of their product lineup to higher leverage levels. The proposal arrives amid a broader expansion of crypto-related investment vehicles in the U.S., following the earlier approval of spot Bitcoin and Ether ETFs and the subsequent development of options trading on those products.

The SEC’s review process for the rule change will involve a public comment period, with a decision window that can extend to 45 days or longer after publication in the Federal Register. Approval is not guaranteed, as regulators will scrutinize factors such as investor protection, market integrity, potential for manipulation, and the operational readiness of the proposed products.

Even if the exchange rule change receives clearance, trading cannot commence until the associated registration statements become effective.

This initiative underscores the ongoing innovation within the regulated derivatives and ETF space, as exchanges and sponsors strive to provide investors with more tools for gaining exposure to both digital assets and traditional commodities. For now, the filings remain under review, with no confirmed timeline for a final decision or potential launch.

As the financial world watches closely, the outcome of this proposal could reshape the investment landscape for cryptocurrencies in the United States.