BlockBeats News, August 15th, the Cboe BZX Exchange, a subsidiary of the Chicago Board Options Exchange (Cboe), submitted a rule change proposal to the U.S. Securities and Exchange Commission (SEC) to launch the first 3x leveraged Bitcoin and Ethereum ETFs in the U.S. market.

According to the filing, Cboe plans to list 3x Bitcoin ETFs, 3x Ethereum ETFs, as well as 3x Gold, Silver, Crude Oil, and Natural Gas ETFs. These products are designed to achieve three times the daily performance of the underlying assets by holding futures contracts from the Chicago Mercantile Exchange (CME) or the Commodity Exchange (COMEX) and using cash and cash equivalents as collateral.

The proposed ETFs will operate in the form of a commodity pool, regulated by the U.S. Commodity Futures Trading Commission (CFTC), rather than the traditional ETF structure regulated by the SEC under the Investment Company Act of 1940.

Since leveraged products do not meet the exchange's existing generic listing standards, Cboe needs to submit a special rule change proposal to the SEC and plans to concurrently file an S-1 registration statement based on the Securities Act of 1933.

Cboe stated that this structure will provide an additional federal regulatory layer. The funds will be issued by Volatility Shares LLC and be part of the VS Trust.

Market analysis indicates that 3x leveraged ETFs are mainly targeted at short-term trading and professional investors and are not suitable as long-term holding tools. Previously, Volatility Shares had already launched 2x Bitcoin and Ethereum strategy ETFs in the U.S., while the European market saw the debut of the first batch of 3x and -3x Bitcoin and Ethereum ETF products last year.