Tuttle Capital’s Bold Crypto ETF Filings

Tuttle Capital Management is taking a bold step into the cryptocurrency market, filing with the U.S. Securities and Exchange Commission (SEC) to propose the first-ever exchange-traded funds (ETFs) tied to a mix of major crypto assets and meme coins. The filings cover 10 leveraged ETFs, including assets like Chainlink (LINK), Cardano (ADA), Polkadot (DOT), and a surprising inclusion: the Melania meme coin (MELANIA).

Other proposed ETFs target XRP, Solana (SOL), Litecoin (LTC), Bonk (BONK), BNP, and the Trump meme coin (TRUMP), signaling a growing trend of innovation in crypto-backed financial products.

Leveraged ETFs: High Risk, High Reward

The proposed ETFs are designed as 2x leveraged products, meaning they aim to deliver twice the daily returns—or losses—of their underlying assets. Leveraged ETFs achieve this by using derivatives such as swaps and call options, alongside direct investments.

While these funds offer the potential for amplified returns, they come with significant risks. According to Tuttle’s filing, a 50% drop in the underlying asset’s value could result in the total loss of the investor’s principal in a single day.

“This is a 1940 Act filing,” explained Bloomberg ETF analyst Eric Balchunas, referencing the legal framework for such products. “Unless the SEC disapproves them, they could be out and trading in April.”

Meme Coins Enter the ETF Market

The inclusion of the Melania meme coin (MELANIA) marks a new frontier for crypto ETFs. As Bloomberg senior ETF analyst Balchunas pointed out, the filing for a 2x leveraged Melania ETF before a standard 1x version is highly unconventional, showcasing Tuttle’s willingness to experiment.

While meme coins like MELANIA and BONK garner headlines, analysts remain skeptical of their approval chances due to extreme price volatility. However, more established assets like Solana, XRP, and Litecoin are seen as stronger candidates for SEC approval.

SEC Shakeup and Pro-Crypto Leadership

The filings come amid a leadership shift at the SEC, with pro-crypto Acting Chair Mark Uyeda replacing Gary Gensler. This transition, coupled with the establishment of a crypto task force led by Commissioner Hester Peirce, has raised industry hopes for a more favorable regulatory environment under the Trump administration.

“These filings test the limits of what the SEC might approve,” noted Bloomberg Intelligence analyst James Seyffart. The SEC’s approach to these innovative products could set the tone for future crypto-backed ETFs.

Market Impact and Regulatory Questions

The proposals reflect the crypto industry’s push to meet diverse market demands while raising crucial questions about regulation and risk management. Saravanan Pandian, CEO of KoinBX, emphasized the dual potential and challenges:

“If these ETFs get approved, they could pave the way for new participants in the market,” Pandian said. “But the SEC needs to ensure risk mitigation and transparency are in place.”

Looking Ahead

Tuttle Capital’s filings join a growing queue of crypto ETF proposals, with recent applications from Osprey and REX Shares covering Dogecoin (DOGE), BONK, XRP, and Solana. Whether these products will gain SEC approval remains uncertain, but the industry’s innovative momentum is undeniable.

If approved, these ETFs could mark a pivotal moment for crypto’s integration into mainstream financial markets, opening new avenues for investors and further legitimizing digital assets.