Tuttle Capital Files for 10 Leveraged Crypto ETFs

Highlights:

• Tuttle Capital has submitted applications for 10 leveraged crypto ETF products to the US SEC.
• Proposed 2x leveraged crypto ETFs aim to double daily returns on major assets.
• Crypto ETF issuers are testing regulatory limits with the SEC, according to Seyffart.

In a January 27 X post, Bloomberg ETF analyst James Seyffart shared that Tuttle Capital Management (TCM) has filed applications with the U.S. Securities and Exchange Commission (SEC) for 10 crypto-based leveraged exchange-traded funds (ETFs). Seyffart mentioned that Tuttle’s proposed funds also consist of “several memecoin products and assets” that currently lack ETFs.

Tuttle Capital’s Crypto ETFs to Offer 2x Long Exposure

Tuttle has filed for 2x leveraged funds for XRP, Solana (SOL), Litecoin (LTC), Cardano (ADA), Chainlink (LINK), Polkadot (DOT), BNP, and Bonk. The funds also include new memecoins from U.S. President Donald Trump (TRUMP) and First Lady Melania Trump (MELANIA). Seyffart said these are probably the first products to track Chainlink, Cardano, Polkadot, BNP, and Melania.

The 2x leveraged ETFs aim to double the daily returns of their underlying assets, providing investors with a high-risk, high-reward opportunity. Traditional ETFs usually track the securities in their underlying index on a one-to-one basis, while a leveraged fund targets a 2:1 (or higher) ratio.

Crypto ETF Issuers Test Regulatory Limits with the SEC, Says Seyffart

ETF expert James Seyffart mentioned that crypto exchange-traded fund issuers are likely testing the regulatory limits with the US SEC. Donald Trump promised to reduce the regulatory issues surrounding crypto during his campaign. After he took office, the SEC formed a crypto task force. It is led by Commissioner Hester Peirce to develop rules for digital assets. “I’m expecting the new crypto task force led by Hester Peirce to likely be the lynchpin in determining what’s gonna be allowed vs what isn’t,” Seyffart added.

To be very clear here. This is a case of issuers testing the limits of what this SEC is going to allow. I'm expecting the new crypto task force (led by @HesterPeirce) to likely be the lynchpin in determining what's gonna be allowed vs what isn't

— James Seyffart (@JSeyff) January 27, 2025

Bloomberg ETF analyst Eric Balchunas said this is a 40 Act filing. He noted that these products could be available for trading by April unless the SEC rejects them. He said seeing how the SEC sets its limits will be interesting. Balchunas noted the Doge/Trump filing hasn’t been withdrawn after a week, which is notable.

Also note this is a 40 act filing so in theory unless the SEC disapproves them they could be out and trading in April. Will be interesting to see where the SEC draws line (if at all) and why. I will say it’s been a week since Doge/Trump filing and it hasn’t been withdrawn. That’s…

— Eric Balchunas (@EricBalchunas) January 27, 2025

Tuttle Capital Joins Crypto ETF Trend

Tuttle Capital is not the first asset manager to file for an ETF backed by a meme coin. Last week, Osprey and Rex Shares filed to list non-leveraged ETFs tracking tokens like President Trump’s memecoin, XRP, BONK, and others.

Market analysts project more crypto ETF applications could be on the way. However, experts believe Solana, XRP, and Litecoin ETF products have higher chances of approval. Earlier this month, Canary Capital filed the 19b-4 rule change for its proposed Litecoin ETF with the SEC.

A new wave of crypto ETFs has emerged since Donald Trump’s presidency. With Mark Uyeda as acting SEC Chair, there’s hope the SEC will approve more funds, unlike under Gary Gensler. Trump has also emphasized his goal of making the U.S. the global crypto hub.