Cboe is seeking approval from the U.S. Securities and Exchange Commission (SEC) to list and trade exchange-traded funds offering 3x leveraged exposure to Bitcoin and Ethereum futures — a proposal that would extend the leveraged crypto ETF race in the United States beyond the 2x products already trading.

What Cboe Is Asking the SEC to Approve

The Cboe BZX Exchange has filed a rule change with the SEC to list and trade the proposed ETFs, according to the filing published on SEC.gov.

The proposed products would track leveraged futures exposure rather than holding spot Bitcoin or Ethereum directly. That structure distinguishes them from the spot crypto ETFs that dominate current U.S. listings — spot Bitcoin funds began trading in January 2024, with spot Ether funds following later that year — while resting on the same futures pathway the SEC first cleared for crypto-linked funds in October 2021 with ProShares' Bitcoin Strategy ETF (BITO).

If cleared, the funds would be the first U.S.-listed 3x Bitcoin and Ether ETFs, as reported by The Block. Leverage itself is not new to the ETF wrapper: 3x funds tied to major U.S. equity indexes have traded for well over a decade, and the crypto filing would extend that structure to digital-asset underlyings. The SEC's decision is the primary open question, since leveraged futures products require the agency's sign-off before they can begin trading. As a proposed rule change, the filing goes through a public comment period, and the SEC can extend its review timeline before approving or disapproving it.

Cboe has been an active venue for crypto-linked ETF filings. The exchange previously moved to bring an Invesco Galaxy Solana ETF to the SEC and to list a 21Shares XRP ETF on its platform, and its BZX market already serves as the listing exchange for several of the spot crypto ETFs currently trading.

Why the Existing 2x Ethereum Fund Shapes the Timing

The push for 3x products follows traction around Volatility Shares' existing 2x Ethereum fund, ETHU, which the issuer lists as a currently trading leveraged product. The same issuer brought the first U.S.-listed 2x Bitcoin futures ETF, BITX, to market in June 2023, marking the arrival of higher-leverage crypto exposure in regulated fund wrappers.

The presence of a live 2x ETH fund signals demand for leveraged crypto exposure and sets up competitive pressure, as issuers race to offer higher-leverage alternatives once a lower-leverage product finds an audience.

For traders and market watchers, a 3x fund would amplify both gains and losses relative to the 2x structure, which makes the SEC's stance on higher-leverage crypto futures the decisive factor in whether the products reach the market. Like other leveraged ETFs, funds of this type generally reset their exposure daily, meaning returns over periods longer than a single day can diverge from a simple multiple of the underlying asset's performance — a mechanic U.S. regulators have flagged in investor guidance on leveraged and inverse ETFs.

Leveraged crypto exposure has expanded across the U.S. market alongside moves such as the Commodity Futures Trading Commission's (CFTC) decision to authorize margin trading for Bitcoin and Ethereum.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.