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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Tuttle Capital Management has filed applications for ten cryptocurrency-based leveraged exchange-traded funds (ETFs), including funds tied to popular meme coins.
Analysts suggest the filings are part of a broader strategy to test the boundaries of a Securities and Exchange Commission (SEC) under Trump-era crypto-friendly regulators.
The proposed ETFs include leveraged funds that aim to deliver twice the returns of their underlying assets, such as the meme coins Official Trump (TRUMP) and Melania Meme (MELANIA), according to Bloomberg ETF analyst James Seyffart.
Proposed ETFs Target XRP, Solana, Litecoin, and Emerging Tokens Like Bonk
The filings also propose ETFs for major cryptocurrencies, including XRP, Solana (SOL), Litecoin (LTC), Chainlink (LINK), Cardano (ADA), Polkadot (DOT), BNP, and Bonk (BONK).
“This is a case of issuers testing the limits of what this SEC is going to allow,” Seyffart stated in a post on X (formerly Twitter).
He added that the SEC’s response will likely be shaped by its newly created crypto task force, led by Commissioner Hester Peirce.
Known for her pro-crypto stance, Peirce is expected to play a pivotal role in determining which ETFs might gain approval.
Notably, the SEC has taken significant steps to regulate digital assets, including the creation of the crypto task force under the Trump administration.
The initiative was aimed at fostering a regulatory framework for cryptocurrencies, further positioning the SEC to evaluate novel financial products like leveraged crypto ETFs.
Bloomberg’s senior ETF analyst, Eric Balchunas, described Tuttle’s filings as “unusual” due to their focus on higher-leverage products for assets that don’t yet have standard ETFs.
Unlike traditional ETFs, which track their underlying assets at a one-to-one ratio, leveraged ETFs amplify returns, often at a 2:1 or higher ratio, adding both opportunity and risk for investors.
“This is a 40-act filing, so unless the SEC disapproves them, these ETFs could be trading as early as April,” Balchunas noted.
He emphasized the SEC’s decisions on these products could set a precedent for future filings, particularly in the growing meme coin ETF category.
Tuttle’s move comes amid a broader push by asset managers to launch ETFs for emerging cryptocurrencies.
Osprey Funds and REX Shares File for ETFs
On Jan. 21, Osprey Funds and REX Shares filed regulatory plans to offer ETFs for meme coins, including DOGE, TRUMP, and BONK.
Additionally, Osprey Funds recently announced plans to convert its Osprey Bitcoin Trust (OBTC) into a spot Bitcoin ETF after a failed acquisition deal with Bitwise.
With 32 Bitcoin ETFs currently traded in the U.S.—11 of which are spot ETFs—the crypto ETF market continues to expand.
Recent approvals for Bitcoin and Ether index ETFs by Hashdex and Franklin Templeton further signal growing institutional interest, potentially paving the way for innovative products like Tuttle’s leveraged ETFs.
Last week, Nasdaq submitted a proposal to the SEC on behalf of BlackRock, aiming to enable in-kind creation and redemption for its spot Bitcoin ETF.
The filing seeks a rule change to allow authorized participants to use Bitcoin directly, rather than cash, to create or redeem ETF shares.
