Cboe pushes for 3x Bitcoin and Ethereum ETFs after 2x crypto funds suffer losses of up to 96%

An important story is making waves across the blockchain ecosystem. 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. 10 proposal covers six Volatility Shares funds tied to Bitcoin, Ethereum, gold, silver, crude oil and natural gas. The crypto products would use futures traded primarily on CME rather than hold BTC or ETH directly.

The filing remains pending. An SEC notice dated Aug. 14 said the funds' registration statement was not yet effective and the shares had not been authorized for trading.

Market Dynamics

The proposed funds would reset leverage every trading day, making longer-term returns dependent on the sequence of daily moves, futures performance, costs, and rebalancing rather than simply three times Bitcoin or ETH's return. Related Reading Bitcoin price is being held up by $79B in futures market bets that could unwind fast BTC's futures activity has surged as ETF inflows resume, creating a market that could extend higher or unwind quickly if liquidity fades. Jul 8, 2026 Oluwapelumi Adejumo Cboe needs a specific exemption The proposed funds do not qualify for Cboe's normal commodity-trust listing route because they seek three times the daily performance of their benchmarks.

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. Cboe is therefore using a Section 19(b) filing to seek case-specific SEC approval for the six Volatility Shares funds.

The filing says the products would otherwise operate within Cboe's commodity-trust framework. Volatility Shares LLC would sponsor the funds, which would be organized as a series of the VS Trust. The sponsor is registered with the Commodity Futures Trading Commission as a commodity pool operator and would handle the day-to-day management of each fund's assets.

Market Impact

US Bancorp Fund Services would serve as transfer agent, fund accountant, and administrator, while US Bank National Association would act as custodian. The funds themselves would operate as commodity pools registered with the CFTC rather than as investment companies registered under the Investment Company Act of 1940. They would still require an effective Securities Act registration statement and SEC approval of Cboe's proposed listing rule before trading could begin.

Related Reading Crypto won the ETF fight but now the SEC is questioning if things have gone too far The SEC is reconsidering whether increasingly complex ETFs are stretching retail investors’ trust in the familiar fund structure too far. Jul 11, 2026 Andjela Radmilac The sponsor would actively increase or decrease each fund's futures holdings to account for benchmark changes and investor creations or redemptions, keeping exposure aligned with the daily 3x objective. For Bitcoin and Ethereum, the benchmarks would use first- and second-month futures contracts traded primarily on CME.

The near-month position would be rolled into the following contract over five business days, with about 20% of the expiring position moved each day. That structure introduces risks beyond the direction of Bitcoin or ETH itself. Futures basis, roll execution, financing, expenses and tracking error can all affect shareholder returns.

Crypto markets are watching this development closely as investors weigh its potential impact on prices.