Tuttle Capital Files 10 Leveraged Crypto ETFs, Including Trump-Themed Meme Coins

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Tuttle Capital is making waves in the financial world with its ambitious application for ten leveraged crypto ETFs (exchange-traded funds).

Also read: Solana ETFs: Understanding Their Impact

The proposed ETFs include funds linked to meme coins inspired by former US President Donald Trump and his wife, Melania Trump. This strategic move has analysts wondering whether these ETFs would test the limits of crypto-friendly rules put in place during Trump’s presidency.

Testing the SEC’s Boundaries with Leveraged Crypto ETFs

The proposed leveraged crypto ETFs by Tuttle Capital include two-times leveraged funds centered on popular tokens such as the Trump (TRUMP) and Melania Meme (MELANIA) meme coins, as well as assets that have yet to be included in ETFs. According to Bloomberg ETF analyst James Seyffart the filings relate to funds based on XRP, Solana, Litecoin, Chainlink, Cardano, Polkadot, BNP, and the meme coin BONK.

Leveraged ETFs, which track assets at a 2:1 or higher ratio, are riskier than ordinary ETFs. Bloomberg’s senior ETF analyst, Eric Balchunas, stated that registering for leveraged crypto ETFs before releasing ordinary ETFs is ‘unusual’. He predicted that if the claims go unchallenged, these funds might get their way to enter the market as early as April.

Trump’s Regulatory Legacy in Focus

During his administration, Trump promised to end regulatory restrictions on cryptocurrencies. His policies prompted the formation of a specialist Securities and Exchange Commission (SEC) cryptocurrency task group. This team is to work on creating a framework for digital asset regulation, and cryptocurrency advocate Commissioner Hester Peirce will manage it.

Seyffart believes Peirce’s task force will play an important role in determining which ETFs are allowed, creating new precedents for the SEC approach to innovative crypto investment.

The meme coin market is becoming popular among asset managers. Tuttle Capital isn’t alone in seeking meme coin ETFs. Asset managers Osprey Funds and REX Shares have recently submitted filings to launch ETFs for popular tokens such as Dogecoin (DOGE), TRUMP, and BONK.

Also read: Crypto ETF Filings Surge as Gensler’s SEC Tenure Nears End

The demand for Bitcoin and Ethereum ETFs is also increasing. Hashdex and Franklin Templeton recently received SEC clearance for their respective Bitcoin and Ethereum funds. Meanwhile, Osprey Funds announced plans to transform its Osprey Bitcoin Trust (OBTC) into a spot Bitcoin ETF after terminating an agreement with Bitwise.

Bitcoin ETFs remain a competitive business in the United States. According to VettaFi, an analytics and worldwide ETF database, there are currently 32 Bitcoin ETFs, although only 11 are spot ETFs. The SEC’s restricted approval of spot ETFs demonstrates its cautious attitude to digital assets. It also raises questions about whether Tuttle Capital’s plans will survive regulatory scrutiny.

Also read: Trump Forcing Everyone to “Up Their Game”: Coinbase CEO Brian Armstrong

With firms like Tuttle Capital pushing the envelope, the SEC faces important decisions that will influence the future of cryptocurrency ETFs. The regulatory landscape will be judged by how leveraged funds are handled, particularly those linked to meme coins.

With much development happening, ETFs are entering a new stage of innovation, and that comes with regulatory challenges. The outcome of Tuttle’s filings may develop the balance between investor risk and market opportunity in the rapidly expanding world of digital asset trading.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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