The SEC reviews Cboe's listing applications for six 3x leveraged commodity ETFs, covering Bitcoin and Ethereum
The U.S. Securities and Exchange Commission (SEC) is reviewing the rule change application submitted by Cboe BZX Exchange, involving six leveraged commodity ETFs that track the benchmark's daily performance by three times. The initial review period set by the SEC is 45 days after publication in the Federal Register.Volatility Shares LLC is the sponsor of the relevant funds, which include 3x Gold, Silver, Bitcoin, Ethereum, Crude Oil, and Natural Gas ETFs, all intended to operate under a commodity pool and not classified as investment companies. Among them, the Bitcoin and Ethereum ETFs will primarily invest in near-month and next-month futures contracts on the Chicago Mercantile Exchange (CME), rather than directly holding Bitcoin or Ethereum, and will allocate cash and cash equivalents as collateral or margin.Before the relevant products are listed, the SEC must approve the exchange rule changes, 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 can subscribe or redeem cash at a rate of 1,000 shares per 10,000 shares.