Bitcoin · Ethereum · SEC · CryptoSlate
Cboe pushes for 3x Bitcoin and Ethereum ETFs after 2x crypto funds suffer losses of up to 96%
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Cboe BZX is asking the Securities and Exchange Commission (SEC) for an exception to its own generic listing rules so it can list funds targeting three times the daily performance of Bitcoin and Ethereum futures.
Key facts
- For a hypothetical $100 million fund, a 5% benchmark move implies roughly $30 million of additional buying or selling in the direction of that move
- Its 2x Bitcoin ETF, BITX, reported a -29.76% quarterly NAV return and a -78.93% one-year return over the same quarter end
- BZX Rule 14.11(e)(4) allows qualifying Commodity-Based Trust Shares to list under generic standards, but Rule 14.11(e)(4)(F) specifically excludes products seeking a multiple of a benchmark
- Its 2x ETH ETF, ETHU, reported a -48.81% NAV return for the second quarter, -79.61% for one year, and -96.15% on an average annualized basis since its June 4, 2024 inception, with all periods ending
Summary
01 Cboe BZX wants SEC approval to list six Volatility Shares funds targeting 3x daily Bitcoin, Ethereum and commodity futures moves. 02 The proposal would give investors leveraged crypto exposure, but daily reset and futures trading can magnify path-dependent losses. 03 Approval is still pending, and the filing does not clear the separate registration and trading steps needed to launch. The Aug. 10 proposal covers six Volatility Shares funds tied to Bitcoin, Ethereum, gold, silver, crude oil and natural gas.