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

Cboe has submitted a filing with the U.S. Securities and Exchange Commission (SEC) seeking approval to list the first 3x leveraged bitcoin and ether exchange-traded funds (ETFs) in the country. The proposal marks a significant step in the evolution of crypto investment vehicles, moving beyond plain spot or futures products into territory that amplifies daily price moves. A 3x leveraged ETF is designed to deliver three times the daily return of its underlying asset, meaning both gains and losses are magnified. Due to daily rebalancing, these products are generally intended for short-term trading rather than long-term holding.

The market relevance lies in what the filing signals about the institutionalization of digital assets. If approved, these ETFs would give traders a new, regulated avenue for expressing directional views on bitcoin and ether without using futures or derivatives. However, the SEC’s stance on leverage and crypto remains cautious, and approval is not guaranteed. Market participants should watch for the SEC’s comment period, potential delays, and any risk disclosures imposed. Ultimately, the decision will serve as another data point on how regulators balance innovation with investor protection in a volatile asset class.