The U.S. Securities and Exchange Commission (SEC) has opened a public comment period on Cboe's proposal to list and trade 3x leveraged Bitcoin and Ethereum ETFs, advancing one of the most closely watched leveraged crypto products another step through the regulatory review process. The move is procedural rather than a decision: the filing remains under review, and the opening of the comment window does not signal how the agency will ultimately rule.

Origin of the Filing

The proposal comes from Cboe's BZX Exchange, which filed a rule change with the SEC seeking permission to list and trade the leveraged funds, according to the exchange's BZX rule filings docket. The terms now open for public review are set out in the SEC's published notice of the proposed rule change.

A comment period is a standard stage in the SEC's evaluation of a proposed rule change. During this window, market participants, investors, and other interested parties may submit written feedback that the agency weighs before it acts.

Cboe is seeking clearance for what would be the first U.S. 3x Bitcoin and Ether ETFs, The Block reported.

Why the 3x Structure Draws Attention

A "3x" fund is designed to deliver three times the daily return of its underlying asset. That structure amplifies both gains and losses relative to holding spot Bitcoin or Ether directly, and it is what sets this filing apart from a plain spot ETF. The daily reset matters as much as the multiple: because leverage is rebalanced every day, returns over holding periods longer than a day can diverge, sometimes sharply, from a simple three-times multiple of the asset's overall move — a mechanical feature of daily-reset leveraged funds that issuers themselves flag in disclosures. U.S. exchanges already list 3x leveraged single-stock ETFs tied to individual equities, but approved crypto funds have so far topped out at 2x leverage.

Leveraged crypto products tend to attract closer scrutiny precisely because that amplification cuts both ways. Cboe advanced the 3x proposal after 2x crypto funds suffered losses of up to 96%, according to CryptoSlate. Those 2x products are not hypothetical: leveraged Bitcoin ETFs of that strength have traded on U.S. exchanges since 2023, so a 3x approval would extend the leverage ladder one rung beyond anything currently cleared. Naming both Bitcoin and Ethereum in the same filing also broadens the market interest surrounding the review.

The filing also lands amid an active regulatory pipeline. The SEC is separately reviewing an "85% proposal" tied to Bitcoin and XRP ETF listings, underscoring how busy the current queue of crypto ETF questions is. That queue has filled quickly: a futures-based Bitcoin ETF launched in late 2021, 2x leveraged Bitcoin ETFs followed in 2023, and spot Bitcoin and spot Ether ETFs began trading in 2024, steadily widening the range of crypto exposure available through conventional brokerage accounts.

What Comes Next

Opening a comment period implies further review steps may follow. The typical sequence runs from public comments to continued SEC evaluation and, later, either a formal decision or a further extension of the review timeline. That sequence runs on a formal clock: for exchange rule changes, the SEC generally has 45 days from the notice's publication in the Federal Register to approve or disapprove, with provisions allowing extensions that can push a final verdict months further out — a path the agency has taken on earlier crypto filings. Members of the public can submit comments through the SEC's online comment system while the window is open.

Readers should watch for official SEC updates on the docket and any response tied specifically to the Cboe filing. Demand-side signals matter as well: spot Bitcoin ETFs recently saw outflows of roughly 77,000 BTC as retail investors exited, while Ethereum's own ETF story continues to draw flows as ETH rallies. Those dynamics shape how a leveraged product might be received if it clears review.

For now, the filing sits with the SEC, and the comment window is the next concrete checkpoint on the calendar for anyone tracking leveraged crypto ETFs.

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.