Cboe seeks SEC nod for first US 3x bitcoin and ether ETFs - The Block

Cboe Global Markets has submitted a filing with the U.S. Securities and Exchange Commission (SEC) seeking approval to list the first 3x leveraged exchange-traded funds (ETFs) tied to bitcoin and ether. If approved, these products would mark a significant departure from the current lineup of U.S.-listed crypto ETFs, which have been limited to either spot or single-times futures exposure for these assets.

Leveraged ETFs use derivatives and debt to amplify the daily return of an underlying index, aiming to deliver multiples like 3x—meaning a 1% move in the underlying crypto could result in a roughly 3% daily gain or loss for the ETF. This magnification cuts both ways, making these products suitable only for short-term, actively managed trading strategies rather than buy-and-hold portfolios. For the market, approval would provide mainstream access to sophisticated tools that have been available for equities but not digital assets in the U.S.

The SEC’s decision remains uncertain, and the agency has historically been cautious with crypto-linked products. Observers will watch for a public comment period and upcoming deadlines, as well as any signals from the SEC regarding investor protections or leverage limits. While the filing is a notable step for crypto adoption, it carries no guarantee of approval.