Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order Granting Approval of a Proposed Rule Change To List and Trade Shares of the 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil ETF, and 3x Natural Gas ETF, Each a Series of the VS Trust, Under BZX Rule 14.11(e)(4) (Commodity-Based Trust Shares)

Issuing agencies

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<title>Federal Register, Volume 91 Issue 193 (Wednesday, October 7, 2026)</title>
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[Federal Register Volume 91, Number 193 (Wednesday, October 7, 2026)]
[Notices]
[Pages 64207-64209]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20507]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106577; File No. SR-CboeBZX-2026-065]


Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Order 
Granting Approval of a Proposed Rule Change To List and Trade Shares of 
the 3x Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude 
Oil ETF, and 3x Natural Gas ETF, Each a Series of the VS Trust, Under 
BZX Rule 14.11(e)(4) (Commodity-Based Trust Shares)

October 2, 2026.

I. Introduction

    On August 10, 2026, Cboe BZX Exchange, Inc. (the ``Exchange'' or 
``BZX'') filed with the Securities and Exchange Commission 
(``Commission''), pursuant to Section 19(b)(1) of the Securities 
Exchange Act of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a 
proposed rule change to list and trade shares (``Shares'') of the 3x 
Gold ETF, 3x Silver ETF, 3x Bitcoin ETF, 3x Ether ETF, 3x Crude Oil 
ETF, and 3x Natural Gas ETF (each, a ``Fund'' and collectively the 
``Funds''), each a series of the VS Trust (``Trust''), under BZX Rule 
14.11(e)(4) (Commodity-Based Trust Shares).\3\ The proposed rule change 
(``Proposal'') was published for comment in the Federal Register on 
August 19, 2026.\4\ This order approves the Proposal.\5\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ Capitalized terms not defined herein are defined in the 
Exchange's rules.
    \4\ See Securities Exchange Act Release No. 106137 (Aug. 14, 
2026), 91 FR 53686 (``Notice''). The Commission has received no 
comments on the Proposal.
    \5\ As used in this order, the term exchange-traded funds 
(``ETFs'') refers to open-end funds that register the offer and sale 
of their shares under the Securities Act of 1933 (``Securities 
Act'') and are regulated as investment companies under the 
Investment Company Act of 1940 (``1940 Act''). The term ``ETPs'' 
refers to exchange traded products that register the offer and sale 
of their shares under the Securities Act but are not regulated under 
the 1940 Act, such as Commodity-Based Trust Shares and exchange-
traded notes (``ETNs''). ETNs are unsecured debt obligations issued 
by financial institutions that pay a return based on the performance 
of a reference asset or benchmark but do not own an underlying 
portfolio of assets. See <a href="https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-50">https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-50</a>. Although each Fund has ``ETF'' in its name, the Funds 
are Commodity-Based Trust Shares and therefore ETPs.
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II. Description of the Proposal

    As described in more detail in the Notice,\6\ the Exchange proposes 
to list and trade the Shares of each of the Funds under BZX Rule 
14.11(e)(4), which governs the listing and trading of Commodity-Based 
Trust Shares on the Exchange. According to the Exchange, each Fund 
seeks daily investment results, before fees and expenses, that 
correspond to three times (3x) the daily performance of each of the 
following: gold, silver, bitcoin, ether, light sweet crude oil, and 
natural gas (for each Fund, the ``Reference Commodity''), as measured 
by the daily changes in the price of a specified portfolio of first- 
and second-month futures contracts on the Reference Commodity (for each 
Fund, a ``Benchmark'').\7\ Each Fund will pursue its investment 
objectives by investing in futures contracts that comprise its 
Benchmark (``Benchmark Futures Contracts''),\8\ together with cash and 
cash equivalents that will serve as collateral or margin for a Fund's 
investments.\9\ To the extent that Benchmark Futures Contracts become 
unavailable for investment (for example, due to price limits, 
accountability levels, increased margin levels, exchange position 
limits, margin requirements, futures commission merchant (``FCM'')-
imposed position limits, or FCM risk mitigation requirements), each 
Fund may invest in: (i) futures contracts on its Reference Commodity 
that settle beyond the

[[Page 64208]]

second month; (ii) ETFs (``Benchmark-Linked ETFs'') that provide 
exposure to its Reference Commodity; (iii) ETPs (``Benchmark-Linked 
ETPs'') that provide exposure to its Reference Commodity; and (iv) 
exchange-listed options on its Benchmark-Linked ETFs, Benchmark-Linked 
ETPs, or Benchmark Futures Contracts.\10\
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    \6\ See Notice, supra note 4.
    \7\ See id. at 53686-8. Each Fund will operate as a series of 
the Trust. The sponsor of the Trust is Volatility Shares LLC 
(``Sponsor''). The Sponsor manages the Trust and will manage the 
Funds. Wilmington Trust, National Association, is the sole trustee 
of the Trust. U.S. Bank National Association serves as custodian for 
the Trust. See id. at 53687; 53687 n.7, 9.
    \8\ The futures contracts in which each Fund will invest trade 
on an exchange that is a Designated Contract Market (``DCM'') 
registered with the Commodity Futures Trading Commission and is an 
Intermarket Surveillance Group (``ISG'') member. See id. at 53691.
    \9\ See id. at 53686. For a further description of the Benchmark 
and Benchmark Futures Contracts for each Fund, see id. at 53687-89.
    \10\ See id. at 53686.
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    The Exchange states that it is submitting the Proposal because each 
Fund will seek daily results, before fees and expenses, equal to three 
times (3x) the daily performance of its Benchmark; however, the Funds 
and the Shares will meet all of the other requirements under the 
generic listing standards for Commodity-Based Trust Shares set forth in 
BZX Rule 14.11(e)(4).\11\
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    \11\ See id. at 53687. See also Securities Exchange Act Release 
Nos. 103995 (Sept. 17, 2025), 90 FR 45414 (Sept. 22, 2025) (SR-
NASDAQ-2025-056; SR-CboeBZX-2025-104; SR-NYSEARCA-2025-54) (Order 
Granting Accelerated Approval of Proposed Rule Changes, as Modified 
by Amendments Thereto, to Adopt Generic Listing Standards for 
Commodity-Based Trust Shares) (``Generics Approval Order''); 106011 
(July 29, 2026), 91 FR 48957 (Aug. 3, 2026) (SR-CboeBZX-2026-061) 
(Notice of Filing, and Order Granting Accelerated Approval of, a 
Proposed Rule Change to Amend Rule 14.11(e)(4) (Commodity-Based 
Trust Shares)) (``Generics Amendment Approval Order'').
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III. Discussion and Commission Findings

    After careful review, the Commission finds that the Proposal is 
consistent with the Act and rules and regulations thereunder applicable 
to a national securities exchange.\12\ In particular, the Commission 
finds that the Proposal is consistent with Section 6(b)(5) of the 
Act,\13\ which requires, among other things, that the Exchange's rules 
be designed to ``prevent fraudulent and manipulative acts and 
practices'' and, ``in general, to protect investors and the public 
interest;'' and with Section 11A(a)(1)(C)(iii) of the Act,\14\ which 
sets forth Congress' finding that it is in the public interest and 
appropriate for the protection of investors and the maintenance of fair 
and orderly markets to assure the availability to brokers, dealers, and 
investors of information with respect to quotations for and 
transactions in securities.
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    \12\ In approving the Proposal, the Commission has considered 
the Proposal's impact on efficiency, competition, and capital 
formation. See 15 U.S.C. 78c(f).
    \13\ 15 U.S.C. 78f(b)(5).
    \14\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
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A. Exchange Act Section 6(b)(5)

    The Commission finds that the Proposal is consistent with the 
Section 6(b)(5) requirement that the Exchange's rules be designed to 
prevent fraudulent and manipulative acts and practices. The Exchange 
represents that the Funds will meet all the requirements set forth in 
BZX Rule 14.11(e)(4) except that each Fund will seek to provide daily 
investment returns that correspond to three times (3x) the daily 
performance of its Benchmark.\15\ The Commission has previously found 
that the requirements set forth in BZX Rule 14.11(e)(4) for the generic 
listing of Commodity-Based Trust Shares are consistent with the 
Act.\16\ Here, the Reference Commodities that underlie the Funds' 
holdings meet the eligibility criteria set forth in BZX Rule 
14.11(e)(4)(D).\17\ Furthermore, ETPs that are not Commodity-Based 
Trust Shares that provide leveraged exposure to each of the Reference 
Commodities currently list and trade on national securities 
exchanges.\18\ As the Commission stated in the Generics Approval Order, 
consistently applying listing standards across products with economic 
exposures to the same underlying commodities levels the playing field 
between issuers, which should promote competition and would more 
readily afford investors greater investment options.\19\
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    \15\ See supra note 13 and accompanying text. BZX Rule 
14.11(e)(4)(F) provides that Commodity-Based Trust Shares eligible 
to list and trade pursuant to Rule 19b-4(e) (i.e., without a rule 
filing pursuant to Section 19(b) of the Act) ``may not seek, 
directly or indirectly, to provide investment returns that 
correspond to the performance of an index, benchmark, or reference 
value by a specified multiple, or to provide investment returns that 
have an inverse or multiple inverse relationship to the performance 
of an index, benchmark, or reference value, over a predetermined 
period of time.'' Thus, BZX Rule 14.11(e)(4) precludes Commodity-
Based Trust Shares that seek leveraged or inverse exposure from 
being eligible for generic listing under the rule.
    \16\ See Generics Approval Order; Generics Amendment Approval 
Order. Among other things, the Commission found that the portfolio 
holding eligibility requirements help to ensure the availability of 
information necessary to aid in the detection and deterrence of 
potential manipulations and other trading abuses, thereby making the 
Commodity-Based Trust Shares less readily susceptible to fraud and 
manipulation. See Generics Approval Order at 45418 and 45418 n.72 
and Generics Amendment Approval Order at 48958. In addition, the 
Commission found that the website disclosure requirements will 
facilitate transparency with respect to the Commodity-Based Trust 
Shares and diminish the risk of manipulation or unfair informational 
advantage, consistent with the maintenance of fair and orderly 
markets and investor protection. See Generics Approval Order at 
45420.
    \17\ Each of gold, silver, bitcoin, ether, crude oil, and 
natural gas underlies a futures contract that has been made 
available to trade on a DCM for at least six months, and the 
Exchange has a comprehensive surveillance-sharing agreement, 
directly or through common ISG membership, with such DCM. See Notice 
at 53690-91. See also BZX Rule 14.11(e)(4)(D)(i)(b).
    \18\ See, e.g., ProShares Ultra Gold (UGL), seeks daily 
investment results that corresponds to two times (2x) the daily 
performance of gold (<a href="https://www.sec.gov/Archives/edgar/data/1415311/000119312526126553/d86378d424b3.htm">https://www.sec.gov/Archives/edgar/data/1415311/000119312526126553/d86378d424b3.htm</a>); MicroSectors Gold 3x 
Leveraged ETN (SHNY), seeks daily investment results that correspond 
to three times (3x) the daily performance of gold (<a href="https://www.sec.gov/Archives/edgar/data/927971/000121465923002804/r215231424b2.htm">https://www.sec.gov/Archives/edgar/data/927971/000121465923002804/r215231424b2.htm</a>); ProShares Ultra Silver (AGQ), seeks daily 
investment results that correspond to two times (2x) the daily 
performance of the silver (<a href="https://www.sec.gov/Archives/edgar/data/1415311/000119312526126553/d86378d424b3.htm">https://www.sec.gov/Archives/edgar/data/1415311/000119312526126553/d86378d424b3.htm</a>); Volatility Shares 2x 
Bitcoin ETF (BITX), seeks daily investment results that correspond 
to two times (2x) the daily performance of bitcoin <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001884021/000121390026072183/ea0295205-01_485bpos.htm">https://www.sec.gov/ix?doc=/Archives/edgar/data/0001884021/000121390026072183/ea0295205-01_485bpos.htm</a>); Volatility Shares 2x 
Ether ETF (ETHU), seeks daily investment results that correspond to 
two times (2x) the daily performance of ether (<a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/0001884021/000121390026072183/ea0295205-01_485bpos.htm">https://www.sec.gov/ix?doc=/Archives/edgar/data/0001884021/000121390026072183/ea0295205-01_485bpos.htm</a>); ProShares Ultra Bloomberg Crude Oil (UCO), seeks 
daily investment results that correspond to two times (2x) the daily 
performance of crude oil (<a href="https://www.sec.gov/Archives/edgar/data/1415311/000119312526126553/d86378d424b3.htm">https://www.sec.gov/Archives/edgar/data/1415311/000119312526126553/d86378d424b3.htm</a>); and ProShares Ultra 
Bloomberg Natural Gas (BOIL), which seeks daily investment results 
that correspond to two times (2x) the daily performance of natural 
gas (<a href="https://www.sec.gov/Archives/edgar/data/1415311/000119312525065644/d841231d424b3.htm">https://www.sec.gov/Archives/edgar/data/1415311/000119312525065644/d841231d424b3.htm</a>). See also the following that 
were previously, but are no longer, listed and traded: 
VelocityShares 3x Long Silver ETN (USLV), designed to correspond to 
three times (3x) the daily performance of silver (<a href="http://sec.gov/Archives/edgar/data/1053092/000095010320012009/dp130575_424b2-vlsetn2a28.htm">sec.gov/Archives/edgar/data/1053092/000095010320012009/dp130575_424b2-vlsetn2a28.htm</a>), ProShares UltraPro 3x Crude Oil ETF (OILU), 
designed to correspond to three times (3x) the daily performance of 
the crude oil (<a href="https://www.sec.gov/Archives/edgar/data/1415311/000119312517093506/d309732d424b3.htm">https://www.sec.gov/Archives/edgar/data/1415311/000119312517093506/d309732d424b3.htm</a>); VelocityShares 3x Long 
Natural Gas ETN (UGAZ), designed to correspond to three times (3x) 
the daily performance of natural gas (<a href="http://sec.gov/Archives/edgar/data/1053092/000095010320012010/dp130569_424b2-vlsetn3a54.htm">sec.gov/Archives/edgar/data/1053092/000095010320012010/dp130569_424b2-vlsetn3a54.htm</a>).
    \19\ See Generics Approval Order at 45419.
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    The Commission also finds that the Proposal is consistent with the 
Section 6(b)(5) requirement that the Exchange's rules be designed to 
protect investors and the public interest because existing rules and 
standards of conduct would apply to recommending and advising 
investments in the Shares. When broker-dealers recommend ETPs to retail 
customers, Regulation Best Interest (``Reg BI'') would apply.\20\ Reg 
BI requires broker-dealers to, among other things, exercise reasonable 
diligence, care, and skill when making a recommendation to a retail 
customer to: (1) understand potential risks, rewards, and costs 
associated with the recommendation and have a reasonable basis to 
believe that the recommendation could be in the best interest of at 
least some retail customers; and (2) have a reasonable basis to believe 
the recommendation is in the best interest of a particular retail 
customer based on that retail customer's investment profile.\21\ In 
addition,

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investment advisers have a fiduciary duty under the Investment Advisers 
Act of 1940 comprised of a duty of care and a duty of loyalty. These 
obligations require the adviser to act in the best interest of its 
client and not subordinate its client's interest to its own.\22\ 
Moreover, FINRA requires increased sales practice and customer margin 
requirements for FINRA members applicable to inverse, leveraged, and 
inverse leveraged securities.\23\ Exchange members that carry customer 
accounts are required to follow the FINRA guidance set forth in these 
notices.\24\
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    \20\ 17 CFR 240.15l-1(a).
    \21\ 17 CFR 240.15l-1(a)(2)(ii)(A) and (B). Separately, under 
Reg BI's Conflict of Interest Obligation, broker-dealers must 
establish, maintain, and enforce written policies and procedures 
reasonably designed to, among other things, identify and disclose or 
eliminate all conflicts of interest associated with a recommendation 
and mitigate conflicts of interest at the associated person level. 
See 17 CFR 240.15l-1(a)(2)(iii)(A) and (B). To the extent that 
broker-dealers recommend ETPs to customers who are not retail 
customers covered by Reg BI, Financial Industry Regulatory Authority 
(``FINRA'') Rule 2111 requires, in part, that a member broker-dealer 
or associated person ``have a reasonable basis to believe that a 
recommended transaction or investment strategy involving a security 
or securities is suitable for the customer, based on the information 
obtained through the reasonable diligence of the [broker-dealer] or 
associated person to ascertain the customer's investment profile.''
    \22\ See Commission Interpretation Regarding Standard of Conduct 
for Investment Advisers, Investment Advisers Act Release No. IA-5248 
(June 5, 2019), 84 FR 33669 (July 12, 2019), at 33671; Investment 
Company Act Release No. IC-34084 (Nov. 2, 2020), 85 FR 83162 (Dec. 
21, 2020), at 83217 (discussing the best interest standard of 
conduct for broker-dealers and the fiduciary obligations of 
investment advisers in the context of all ETPs).
    \23\ See e.g., FINRA Regulatory Notices 09-31 (June 2009), 09-53 
(Aug. 2009), 12-03 (Jan. 2012), 17-32 (Oct. 2017), 22-08 (Mar. 
2022).
    \24\ See id. The Exchange also has rules relating to 
suitability. In particular, BZX Rule 3.7 imposes suitability 
obligations on Exchange members with respect to recommending 
transactions in the Shares to customers and Interpretation and 
Policy .01 of BZX Rule 3.7 imposes a duty of due diligence on 
Exchange members to learn the essential facts relating to every 
customer prior to trading the Shares, and specifically provides that 
``[n]o Member shall recommend to a customer a transaction in any 
such product unless the Member has a reasonable basis for believing 
at the time of making the recommendation that the customer has such 
knowledge and experience in financial matters that he may reasonably 
be expected to be capable of evaluating the risks of the recommended 
transaction and is financially able to bear the risks of the 
recommended position.''
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B. Exchange Act Section 11A(a)(1)(C)(iii)

    The Proposal sets forth aspects of the Funds, including the 
availability of pricing information, transparency of portfolio 
holdings, and types of surveillance procedures, that are consistent 
with other ETPs that the Commission has approved.\25\ This includes 
commitments regarding: for example, the availability on the Trust's 
website of certain information related to the Funds, including each 
Fund's net asset value per Share; the dissemination of information 
relating to the underlying Reference Commodities, indices, or the 
intraday indicative value, made widely available on at least a 15-
second delayed basis; the Exchange's surveillance procedures and 
ability to obtain information regarding trading in the Shares; the 
conditions under which the Exchange would implement trading halts and 
suspensions; and the requirements of registered market makers in the 
Shares.\26\
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    \25\ See, e.g., Securities Exchange Act Release No. 105582 (May 
29, 2026), 91 FR 33252 (June 3, 2026) (SR-NASDAQ-2025-085) (Order 
Granting Accelerated Approval of a Proposed Rule Change, as Modified 
by Amendment No. 1 Thereto, to List and Trade Shares of the iShares 
Bitcoin Premium Income ETF under Nasdaq Rule 5711(d) (Commodity-
Based Trust Shares)).
    \26\ See BZX Rule 14.11(e)(4)(E), (I), (J), (L).
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    Apart from each Fund seeking daily results, before fees and 
expenses, equal to three times (3x) the daily performance of its 
Benchmark, the Shares must meet all the requirements for initial and 
continued listing under BZX Rule 14.11(e)(4). The Shares will be 
subject to the rules and procedures of the Exchange that currently 
govern the trading of equity securities on the Exchange.\27\ All 
statements and representations contained in the Proposal regarding, 
among others things, the description of the Benchmarks and the Funds' 
holdings, limitations on the Benchmarks and the Funds' holdings, and 
the applicability of the Exchange's listing rules specified in the 
Proposal, will constitute continued listing requirements.\28\ Moreover, 
the Trust must notify the Exchange of any failure by a Fund to comply 
with the continued listing requirements.\29\ Pursuant to obligations 
under Section 19(g)(1) of the Act,\30\ the Exchange will surveil for 
compliance with the continued listing requirements; and if a Fund is 
not in compliance with the applicable listing requirements, the 
Exchange will commence delisting procedures.\31\
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    \27\ See BZX Rule 14.11(e)(4)(B).
    \28\ See BZX Rule 14.11(e)(4)(A).
    \29\ Id.
    \30\ 15 U.S.C. 78s(g)(1).
    \31\ See BZX Rule 14.11(e)(4)(I).
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    The Commission therefore finds that the Proposal is reasonably 
designed to promote fair disclosure of information that may be 
necessary to price the Shares appropriately, to prevent trading when a 
reasonable degree of transparency cannot be assured, to safeguard 
material non-public information relating to each Fund's portfolio, and 
to ensure fair and orderly markets for the Shares.

IV. Conclusion

    This approval order is based on all of the Exchange's 
representations and descriptions in the Proposal, which the Commission 
has evaluated as discussed above.\32\ For the reasons set forth above, 
the Commission finds, pursuant to Section 19(b)(2) of the Act,\33\ that 
the Proposal is consistent with the requirements of the Act and the 
rules and regulations thereunder applicable to a national securities 
exchange, and in particular, with Section 6(b)(5) and Section 
11A(a)(1)(C)(iii) of the Act.\34\
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    \32\ In addition, the Shares must comply with the requirements 
of BZX Rule 14.11(e)(4) to be listed and traded on the Exchange on 
an initial and a continuing basis, except that each Fund will seek 
daily results, before fees and expenses, equal to three times (3x) 
the daily performance of its Benchmark.
    \33\ 15 U.S.C. 78s(b)(2).
    \34\ 15 U.S.C. 78f(b)(5); 15 U.S.C. 78k-1(a)(1)(C)(iii).
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    It is therefore ordered, pursuant to Section 19(b)(2) of the 
Act,\35\ that the proposed rule change (SR-CboeBZX-2026-065) be, and 
hereby is, approved.
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    \35\ 15 U.S.C. 78s(b)(2).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\36\
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    \36\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20507 Filed 10-6-26; 8:45 am]
BILLING CODE 8011-01-P


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