Cboe Global Markets has petitioned the Securities and Exchange Commission to approve the first U.S. exchange-traded funds offering 3x amplified exposure to Bitcoin and Ether, according to regulatory filings.
The request marks the first time a major U.S. exchange operator has sought SEC clearance for crypto ETFs with 3x daily reset amplification. Two-times amplified crypto ETF products already trade in the U.S., and equity markets have long supported 3x amplified ETFs, but crypto investors have not had access to that amplification tier through regulated fund products.
Cboe's application follows the SEC's approval of spot Bitcoin and Ether ETFs in January 2024, which opened institutional capital flows into the spot market. Amplified crypto ETFs would extend that infrastructure into derivatives-like products but with the regulatory wrapper and custody guarantees of traditional ETF structure. A amplified ETF resets its position daily and charges fees for the service, while perpetual futures contracts on crypto exchanges allow continuous amplification without daily rebalancing.
The 2x amplified crypto ETFs now available in the U.S. include Direxion Daily Bitcoin Bull 2X Shares and its Ether equivalent, launched after spot ETF approval. Those products reset daily and carry expense ratios ranging from 0.95% to 1.15%. A 3x product would face higher costs to maintain amplification and steeper tracking error, but would appeal to traders betting on concentrated directional moves.
Cboe did not specify a timeline for SEC decision. The regulator has approved increasingly complex crypto products over the past two years, but amplification adds counterparty and operational risk that may extend review. The SEC denied crypto futures ETPs multiple times before approving Bitcoin futures in 2021 and Ether futures in 2023.
Institutional adoption of spot Bitcoin and Ether ETFs reached $41 billion in combined assets under management by mid-2024. Amplified ETFs are typically used by traders on short timeframes rather than long-term holders, but their approval would expand the toolkit available to registered investment advisors and hedge funds already using spot products.
Cboe operates the second-largest U.S. equity options exchange and has been among the first to apply for crypto product approvals. If approved, the exchange would compete directly with Direxion and other issuers already operating amplified crypto funds. The outcome will depend partly on whether the SEC views 3x amplification as materially riskier than 2x products already in circulation.
