SEC reviews Cboe's application to list six 3x leveraged commodity ETFs, covering Bitcoin and Ethereum

Odaily Planet Daily News The U.S. Securities and Exchange Commission (SEC) is reviewing a rule change proposal submitted by Cboe BZX Exchange involving six leveraged commodity ETFs that track 3x the single-day performance of their underlying benchmarks. The SEC's initial review period is 45 days after publication in the Federal Register.

Volatility Shares LLC is the sponsor of the related funds, with products including 3x gold, silver, Bitcoin, Ethereum, crude oil, and natural gas ETFs, all proposed to operate as commodity pools and not classified as investment companies.

Among them, the Bitcoin and Ethereum ETFs will primarily invest in Chicago Mercantile Exchange (CME) near-month and next-month futures contracts rather than directly holding Bitcoin or Ethereum, and will allocate cash and cash equivalents as collateral or margin.

Before the related products can be listed, the SEC must approve the exchange's rule change, and the trust's Form S-1 registration statement must also become effective. Each fund must have at least 100,000 shares at the time of listing, and authorized participants may subscribe or redeem in cash in increments of 10,000 shares. (Bitcoin.com News)