Tuttle Capital files 10 leveraged crypto ETFs

Tuttle Capital Management has submitted applications for ten leveraged crypto exchange-traded funds (ETFs), marking a significant move in the cryptocurrency investment landscape.

These proposed ETFs aim to provide two times leveraged exposure to various digital assets, including notable memecoins associated with Donald and Melania Trump.

Analysts suggest that this filing is a test of the regulatory boundaries set by the U.S. Securities and Exchange Commission (SEC) under new leadership.

“This is a case of issuers testing the limits of what this SEC is going to allow,” stated Bloomberg ETF analyst James Seyffart emphasised the importance of this moment.

The proposed funds will track not only the Trump-themed tokens but also established cryptocurrencies such as XRP (CRYPTO:XRP), Solana (CRYPTO:SOL), Litecoin (CRYPTO:LTC), Cardano (CRYPTO:ADA), Chainlink (CRYPTO:LINK), and Polkadot (CRYPTO:DOT).

Seyffart noted that these filings are particularly significant as they represent the first attempts to create ETFs for certain assets like Chainlink and Cardano.

Eric Balchunas, another Bloomberg analyst, remarked on the unusual nature of these filings given their higher leverage compared to standard ETFs, which typically track assets on a one-to-one basis.

He indicated that unless the SEC raises objections, these ETFs could potentially begin trading as early as April.

The recent filings come amid a broader trend of asset managers seeking to launch crypto-focused ETFs, with other firms also pursuing similar products for various memecoins.

As the regulatory landscape evolves, it remains to be seen how the SEC will respond to these initiatives and where it will draw the line regarding leveraged crypto products.

The establishment of a new crypto task force led by Hester Peirce is expected to play a crucial role in shaping future regulations surrounding digital asset investments.