SEC Reviews Cboe Applications for Six 3x Leveraged Commodity ETFs

Regulators assess Cboe's filing for six 3x leveraged commodity ETFs, including Bitcoin and Ethereum products. The review covers futures-based structures sponsored by Volatility Shares.

Woofun AI reports that the SEC is evaluating a rule change request from Cboe BZX regarding six leveraged commodity ETFs. These funds, sponsored by Volatility Shares LLC, aim to track three times the daily performance of gold, silver, crude oil, natural gas, Bitcoin, and Ethereum. The products are structured as commodity pools rather than investment companies. The Bitcoin and Ethereum ETFs will invest in near-term and next-month CME futures contracts, using cash equivalents as collateral instead of holding spot assets. Listing requires SEC approval of the exchange rule changes and the effectiveness of the trust's Form S-1 registration statement. Each fund must have at least 100,000 shares available at launch, with authorized participants able to transact in increments of 10,000 shares.