SEC reviews Cboe's listing applications for six 3x leveraged commodity ETFs, covering Bitcoin and Ethereum

Comparatively, the US Securities and Exchange Commission (SEC) is reviewing a rule change application submitted by the Cboe BZX exchange involving 6 leveraged commodity ETFs that track 3 times the benchmark's single-day performance. The initial SEC review period is 45 days after publication in the Federal Register.

Volatility Shares LLC is the relevant fund sponsor. The products include 3x gold, silver, Bitcoin, Ethereum, crude oil, and gas ETFs, all of which intend to operate on a commodity pool and are not an investment company. Among them, Bitcoin and Ethereum ETFs will mainly invest in recent and next month futures contracts on the Chicago Mercantile Exchange (CME), rather than directly holding Bitcoin or Ethereum, and allocating cash and cash equivalents as collateral or margin.

Before the relevant products are listed, the SEC must approve changes in exchange rules, and the trust's Form S-1 registration statement must also take effect. Each fund must have at least 100,000 shares at the time of listing, and authorized participants can purchase or redeem each 10,000 shares in cash.