SEC Approves Cboe Listing for 3x Commodity ETPs Covering Bitcoin, Ether and Metals

The U.S. Securities and Exchange Commission approved Cboe BZX Exchange’s proposed rule change to list and trade six commodity-based trust shares seeking daily returns equal to three times the performance of their benchmarks. The approved products are proposed for gold, silver, bitcoin, ether, crude oil and natural gas, according to the SEC’s October 2 order.

The order covers shares in series of the VS Trust. The underlying benchmarks use specified portfolios of first- and second-month futures contracts, and the products may use other futures, exchange-traded products or listed options in specified circumstances. The order is an approval of the exchange’s listing proposal; it is not a recommendation of the products.

Why it matters

The decision creates a route for Cboe BZX to list products with 3x daily commodity exposure, including exposure linked to bitcoin and ether futures. Daily-reset leverage can make returns differ substantially from three times a commodity’s move over longer holding periods, particularly in volatile or choppy markets. Traders considering any eventual listing should review the prospectus, trading availability and the product’s stated benchmark before treating it as a long-term proxy for the underlying asset.

The SEC said broker-dealer recommendations to retail customers remain subject to Regulation Best Interest, while FINRA’s leveraged-product sales-practice and margin requirements also apply to member firms.

What to watch next

Watch for issuer registration materials, exchange notices and actual listing dates. The SEC order requires the shares to satisfy Cboe BZX’s initial and continued listing standards, apart from the daily 3x exposure that required the rule filing.