Tuttle Capital Administration has filed purposes for ten cryptocurrency-based leveraged exchange-traded funds (ETFs), together with funds tied to widespread meme cash.
Analysts recommend the filings are a part of a broader technique to check the boundaries of a Securities and Change Fee (SEC) beneath Trump-era crypto-friendly regulators.
The proposed ETFs embody leveraged funds that goal to ship twice the returns of their underlying belongings, such because the meme cash Official Trump (TRUMP) and Melania Meme (MELANIA), in keeping with Bloomberg ETF analyst James Seyffart.
Proposed ETFs Goal XRP, Solana, Litecoin, and Rising Tokens Like Bonk
The filings additionally suggest ETFs for main cryptocurrencies, together with XRP, Solana (SOL), Litecoin (LTC), Chainlink (LINK), Cardano (ADA), Polkadot (DOT), BNP, and Bonk (BONK).
“It is a case of issuers testing the boundaries of what this SEC goes to permit,” Seyffart acknowledged in a put up on X (previously Twitter).
He added that the SEC’s response will possible be formed by its newly created crypto activity power, led by Commissioner Hester Peirce.
Identified for her pro-crypto stance, Peirce is anticipated to play a pivotal function in figuring out which ETFs would possibly acquire approval.
Additionally be aware it is a 40 act submitting so in concept until the SEC disapproves them they may very well be out and buying and selling in April. Will probably be fascinating to see the place the SEC attracts line (if in any respect) and why. I’ll say it’s been per week since Doge/Trump submitting and it hasn’t been withdrawn. That’s…
— Eric Balchunas (@EricBalchunas) January 27, 2025
Notably, the SEC has taken vital steps to manage digital belongings, together with the creation of the crypto activity power beneath the Trump administration.
The initiative was geared toward fostering a regulatory framework for cryptocurrencies, additional positioning the SEC to guage novel monetary merchandise like leveraged crypto ETFs.
Bloomberg’s senior ETF analyst, Eric Balchunas, described Tuttle’s filings as “uncommon” attributable to their deal with higher-leverage merchandise for belongings that don’t but have customary ETFs.
In contrast to conventional ETFs, which monitor their underlying belongings at a one-to-one ratio, leveraged ETFs amplify returns, usually at a 2:1 or increased ratio, including each alternative and threat for buyers.
“It is a 40-act submitting, so until the SEC disapproves them, these ETFs may very well be buying and selling as early as April,” Balchunas famous.
He emphasised the SEC’s selections on these merchandise might set a precedent for future filings, notably within the rising meme coin ETF class.
Tuttle’s transfer comes amid a broader push by asset managers to launch ETFs for rising cryptocurrencies.
Osprey Funds and REX Shares File for ETFs
On Jan. 21, Osprey Funds and REX Shares filed regulatory plans to supply ETFs for meme cash, together with DOGE, TRUMP, and BONK.
Moreover, Osprey Funds just lately introduced plans to transform its Osprey Bitcoin Belief (OBTC) right into a spot Bitcoin ETF after a failed acquisition take care of Bitwise.
With 32 Bitcoin ETFs at the moment traded within the U.S.—11 of that are spot ETFs—the crypto ETF market continues to increase.
Current approvals for Bitcoin and Ether index ETFs by Hashdex and Franklin Templeton additional sign rising institutional curiosity, probably paving the way in which for modern merchandise like Tuttle’s leveraged ETFs.
Final week, Nasdaq submitted a proposal to the SEC on behalf of BlackRock, aiming to allow in-kind creation and redemption for its spot Bitcoin ETF.
The submitting seeks a rule change to permit approved individuals to make use of Bitcoin instantly, fairly than money, to create or redeem ETF shares.
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