Cboe has asked the U.S. Securities and Exchange Commission to approve 3x leveraged Bitcoin and Ethereum futures ETFs, a proposal that would push leveraged crypto exposure to a new level and intensify the race among issuers to bring more aggressive digital-asset products to U.S. markets.

The exchange detailed the plan in a rule filing submitted to the SEC, which lists the products as triple-leveraged, futures-based funds tracking Bitcoin and Ethereum, according to the Cboe BZX filing. SEC sign-off remains the immediate regulatory hurdle before either fund could list. For related coverage, see Bitcoin slips as U.S. inflation misses catalyst hopes and ETFs post August's first two-day outflow.

The move was flagged by crypto news account @WuBlockchain, which reported that Cboe is pursuing the 3x funds for both major tokens. With Bitcoin and Ethereum both named in the push, the filing signals a broad leveraged product effort rather than a single-asset test.

Why 3x Leverage Raises the Stakes

A 3x fund is designed to deliver three times the daily move of its underlying futures, compared with the 2x offerings already on the market. The structure amplifies gains and losses alike, meaning a daily decline in the underlying is magnified threefold for holders. Like other daily-reset leveraged products, such funds rebalance exposure every session, so compounding can cause returns over longer holding periods to diverge sharply from a simple threefold multiple of the underlying's move, an effect product disclosures typically flag as most pronounced in volatile markets.

These are futures-based products, not spot funds that hold the tokens directly. That distinction matters because the funds would track derivatives contracts rather than the coins themselves, a design already familiar from Cboe's work to launch longer-dated Bitcoin and Ethereum futures. Futures-based structures also carry roll costs as expiring contracts are replaced, which can affect how closely a fund tracks the underlying assets over time.

Issuers appear to be betting on demand for more aggressive trading vehicles as leveraged crypto ETFs proliferate. The same appetite has driven activity around single-asset products, including the SEC's decision to approve higher options position limits for BlackRock's IBIT Bitcoin ETF.

How Volatility Shares' 2x ETH Fund Fits In

The proposal ties Cboe's filing to Volatility Shares' existing 2x Ethereum fund, positioning that product as the benchmark the new 3x offerings would leap past. Volatility Shares helped establish the U.S. leveraged crypto category when it listed the country's first 2x Bitcoin futures ETF in June 2023, and the Ethereum fund extended that playbook to the second-largest token. Exact performance figures for the fund were not confirmed in the available reporting, as the source text was truncated on that point.

What the comparison does establish is competitive pressure in leveraged crypto ETF design, with issuers escalating from 2x to 3x exposure. That trend mirrors broader institutional interest in the category, seen in moves such as JPMorgan raising its Bitcoin and Ether ETF positions in the second quarter.

Product expansion is not limited to leverage. Issuers have also been widening the range of underlying assets, with Grayscale moving to register Cardano and Hedera ETFs in Delaware.

Cboe's filing now sits with the SEC, and approval timing, tickers and launch dates were not specified in the available documentation. The SEC can extend its review timeline on novel fund structures before approving or disapproving them. If cleared, the pair would become the first 3x crypto ETFs available in ordinary U.S. brokerage accounts, a threshold that could open the door to matching filings from rival issuers.

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.