US 3x Crypto ETFs Advance
Cboe Files with SEC to Launch First US 3x Bitcoin and Ether Leveraged ETFs
Key Points
The SEC review pathway is defined by a specific SR-CboeBZX-2026-065 filing, with the funds to be considered under a Section 19(b) submission and a related Form S-1 registration, and the SEC published a notice on August 14 inviting public comment.
For Bitcoin (and Ether) 3x exposure, the funds would primarily use CME/COMEX futures, with the Bitcoin fund relying on first- and second-month CME Bitcoin futures contracts and collateral maintained as cash equivalents to meet the daily objective; holdings would be adjusted to reflect share creations/redemptions and benchmark value changes.
The move follows Europe’s lead, where 3x crypto ETPs have been available since November 2025; the U.S. would join that level of leveraged crypto exposure, complementing the existing 2x products already offered by Volatility Shares in the U.S.
The proposed funds would be structured as commodity pools overseen by the CFTC rather than traditional 1940 Act investment companies, representing an additional layer of federal regulatory oversight beyond typical physical-commodity ETPs.
The filing also notes initial market access through Interactive Brokers with Charles Schwab expected to add access later, signaling early distribution channels for these new 3x funds.
Cboe BZX Exchange has asked the SEC to approve the first-ever U.S. 3x leveraged Bitcoin and Ether ETFs, a move that would let traders bet on triple the daily price swings of the two largest cryptocurrencies. CoinFomania reported that the SEC formally acknowledged the filing on August 14, opening a public comment period under rule change SR-CboeBZX-2026-065.
If approved, the funds — sponsored by Volatility Shares LLC — would join four other 3x leveraged products covering Gold, Silver, Crude Oil, and Natural Gas. Crypto Times noted the filing marks a major step toward bringing the U.S. in line with European markets, where 3x crypto products have been available since November 2025.
How the 3x Funds Would Actually Work
Each fund aims to deliver three times the daily return of its target asset. To do that, the Bitcoin fund would hold first- and second-month CME Bitcoin futures contracts, according to BigGo Finance. Cash equivalents would serve as collateral. The fund would rebalance every day to keep the 3x target in line with share creations, redemptions, and price changes.
These funds would not be structured like a typical ETF. Instead, they would operate as commodity pools — a legal structure overseen by the CFTC, not just the SEC. CoinDoo explained that this adds a layer of federal oversight beyond what standard commodity ETPs face. Because the products fall outside Cboe's normal listing rules, they need full SEC approval via a Form S-1 registration.
U.S. Catches Up to Europe's Leveraged Crypto Market
Europe got there first. Three-times leveraged crypto ETPs launched in Europe in November 2025, giving traders there a head start. The U.S. already has 2x Bitcoin and Ether products from Volatility Shares, but nothing at 3x. Crypto Economy reported that approval would close that gap and bring a new class of aggressive trading tools to American investors.
The filings are clear that these products are not for buy-and-hold investors. Daily rebalancing means compounding effects can quickly work against anyone who holds for more than a day. The funds are designed for tactical, short-term trading by sophisticated investors who understand volatility risk.
SEC Review Opens the Door — But Approval Is Not Certain
The SEC published its notice on August 14, starting the formal review clock. Public comments are now open under the Section 19(b) process. CoinFomania noted that SEC acknowledgment does not mean approval — it simply moves the proposal to the next stage of review.
Early distribution plans are already taking shape. The filing names Interactive Brokers as the initial access point, with Charles Schwab expected to add the funds later. CoinDoo reported that this staged rollout signals confidence from the sponsors that approval could come, even as the SEC's decision remains uncertain.
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