Cboe BZX Exchange is looking for U.S.
Securities and Exchange Commission approval to list a suite of leveraged commodity exchange-traded funds, including 3x daily bitcoin and ether products.
According to the proposed rule change proposal on Friday, the firm is looking to introduce a 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil ETF and 3x Natural Gas ETF, all of which are aiming to deliver three times the daily performance of its underlying asset primarily by holding futures contracts on CME or COMEX, with cash and cash equivalents as collateral.
Generally speaking, highly leveraged funds are designed for short-term, tactical trading by sophisticated investors — not for long-term holding.
"The Sponsor (defined below) will increase and decrease the number of Benchmark Futures Contracts that each Fund holds in order to accommodate purchases and redemptions of Shares and to account for changes in the value of the Benchmark so that each Fund can meet its daily investment objective," Choe wrote.
