Cboe BZX Exchange has filed a proposed rule change with the US Securities and Exchange Commission seeking approval to list and trade the first-ever 3x leveraged bitcoin and ether exchange-traded funds in the United States.
The filing, published by the SEC on Thursday, reveals that Volatility Shares LLC will sponsor the suite of funds, which will operate under the VS Trust. In addition to the 3x Bitcoin ETF and 3x Ether ETF, the proposal covers 3x Gold, 3x Silver, 3x Crude Oil, and 3x Natural Gas ETFs, all designed to deliver three times the daily performance of their respective underlying commodities through futures contracts.
Why the Funds Require Special SEC Approval
Because the proposed products seek leveraged returns, they fall outside Cboe BZX Exchange’s generic listing standards, which prohibit leveraged products under standard procedures. This forces the exchange to submit a specific 19b-4 rule change request for SEC review. Cboe will also file a related Form S-1 registration statement under the Securities Act of 1933, adding what it described as an “additional layer of federal regulatory oversight” beyond what a physical commodity-based exchange-traded product would face.
The filing notes that these funds are designed for short-term, tactical trading by sophisticated investors rather than long-term holding, a standard caveat for leveraged products that amplify both gains and losses on a daily basis.
A Competitive Landscape for Leveraged Crypto Products
The move comes as a competitive race intensifies among exchanges and asset managers to bring increasingly complex crypto products to US markets. Volatility Shares, which previously filed for 3x and 5x leveraged ETFs covering bitcoin, ethereum and solana, has been at the forefront of this push. The SEC has yet to approve any 3x or higher leveraged crypto ETF, making this filing a key test of the agency’s evolving posture toward digital asset products.
The US spot bitcoin and ether ETF market has already attracted tens of billions in assets since its launch in 2024, and leveraged products could attract significant speculative capital if cleared. However, regulators have historically been cautious about retail access to highly leveraged investment vehicles, particularly in volatile asset classes.
Bitcoin was trading around $63,000 at the time of filing, while ether hovered near $1,880, both well below their 2025 highs. The proposed leveraged ETFs would provide traders with a way to magnify short-term bets on price movements without using margin accounts or derivatives directly.
The SEC’s decision timeline for the filing has not been publicly announced. If approved, the products would represent a significant expansion of the regulated crypto investment toolkit available to US investors.
Sources: The Block; CoinDesk; SEC filing 34-106137; Cboe BZX Exchange rule filings
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