Tuttle Capital Management has filed applications for ten new leveraged cryptocurrency exchange-traded funds (ETFs), including funds tied to popular meme coins such as Official Trump (TRUMP) and Melania Meme (MELANIA). This move is seen by analysts as part of a broader strategy to test the limits of the U.S. Securities and Exchange Commission’s (SEC) approach under Trump-era crypto-friendly regulators.
The proposed ETFs aim to deliver twice the returns of their underlying assets, with a focus on both well-established cryptocurrencies and emerging tokens. In addition to meme coins, the filings include leveraged ETFs for major digital assets like XRP, Solana (SOL), Litecoin (LTC), Chainlink (LINK), Cardano (ADA), Polkadot (DOT), and newer tokens such as Bonk (BONK).
Testing the SEC’s Boundaries
Bloomberg ETF analyst James Seyffart believes the filings represent an attempt to push the boundaries of what the SEC will allow, especially under the leadership of Commissioner Hester Peirce, a pro-crypto advocate. Peirce, who heads the SEC’s new crypto task force, is expected to play a key role in determining whether these high-leverage crypto ETFs will be approved.
“The SEC’s decision will likely hinge on the work of the crypto task force,” Seyffart wrote on X (formerly Twitter). “This is issuers testing the limits of what this SEC is going to allow.”
The SEC has made significant strides in regulating digital assets, especially with the creation of its crypto task force during the Trump administration. The initiative is designed to establish a regulatory framework for cryptocurrency and to evaluate innovative financial products like leveraged crypto ETFs.
Leveraged Crypto ETFs: High Risk, High Reward
Unlike traditional ETFs, which track an asset’s price on a one-to-one ratio, leveraged ETFs amplify returns by 2:1 or more. This creates both opportunities for higher profits and greater risks for investors. Bloomberg’s Eric Balchunas called Tuttle’s filings “unusual” due to the focus on high-leverage products, especially for assets that don’t yet have standard ETFs.
“If the SEC doesn’t disapprove them, these ETFs could start trading as soon as April,” said Balchunas. He added that the SEC’s response to these filings could set a precedent for future crypto ETFs, especially in the meme coin space.
A Broader Push for Meme Coin ETFs
Tuttle’s filings come amid a broader trend, as asset managers push to launch ETFs for emerging cryptocurrencies. On January 21, Osprey Funds and REX Shares filed similar regulatory plans for meme coin ETFs, including DOGE, TRUMP, and BONK. Osprey also recently announced plans to convert its Osprey Bitcoin Trust (OBTC) into a spot Bitcoin ETF following a failed acquisition deal with Bitwise.
With 32 Bitcoin ETFs currently trading in the U.S., including 11 spot ETFs, the crypto ETF market is expanding rapidly. Recent approvals for Bitcoin and Ether index ETFs by firms like Hashdex and Franklin Templeton show growing institutional interest, further setting the stage for products like Tuttle’s leveraged ETFs.
Looking Ahead: Institutional Push Continues
The crypto ETF market continues to grow, with more filings and proposals in the works. Just last week, Nasdaq submitted a proposal to the SEC on behalf of BlackRock to enable in-kind creation and redemption for its spot Bitcoin ETF. This filing seeks a rule change that would allow authorized participants to use Bitcoin directly, instead of cash, to create or redeem ETF shares.
As the SEC’s stance on crypto products evolves, the market is watching closely to see how regulators handle these new, high-risk investment vehicles like Tuttle’s leveraged ETFs.
