Bitcoin News

Story: Cboe Files for 3x Leveraged Bitcoin and Ether ETFs, Putting SEC in the Hot Seat

By Sydney TheCMO

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What happened. Cboe BZX Exchange has filed a rule change request with the SEC to list and trade 3x leveraged ETFs…

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The historical context. It's not the first time someone's tried to push the envelope on crypto ETFs.

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Why it matters. The strategic angle here is real. For institutional players — hedge funds, prop desks,…

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What to watch. The SEC's decision is the obvious thing to track. An approval would set a landmark precedent — not…

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Cboe BZX Exchange has filed a rule change request with the SEC to list and trade 3x leveraged ETFs covering both Bitcoin and Ether. The products are from Volatility Shares.

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It's not the first time someone's tried to push the envelope on crypto ETFs. Back in 2019, Bitwise Asset Management and a handful of others filed for straightforward Bitcoin…

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But leveraged products are a different animal. The history here isn't pretty. Traditional finance has a long memory when it comes to derivatives blowing up — 2008 being the…

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The strategic angle here is real. For institutional players — hedge funds, prop desks, sophisticated family offices — a 3x leveraged ETF on Bitcoin or Ether is basically a…

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For retail investors, it's a different story. Probably not a good one. The math on 3x leveraged products is punishing over time due to volatility decay — even if the underlying…

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And yet the filing exists. Cboe BZX went ahead and submitted it. That's not nothing. It says something about where institutional appetite sits right now — there's clearly demand…

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See also: Edelman and Tudor Investment Make Major Moves in Bitcoin ETFs

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The winners, if this gets approved, are probably sophisticated traders who know how to use leverage properly and can manage the risks in real time.

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There's also a bigger-picture implication worth noting. Approval would blur the line between conventional financial instruments and digital assets even further — something that's…

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The SEC's decision is the obvious thing to track. An approval would set a landmark precedent — not just for Volatility Shares, but for every other issuer sitting on a similar…

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More context: Bank Leumi and Galaxy Digital Team Up to Bring Bitcoin, Ether, and Solana to 25% of Israeli Crypto Users

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