Tuttle Capital Files for 10 Leveraged Crypto ETFs, Pushing Regulatory Boundaries

Tuttle Capital Files for 10 Leveraged Crypto ETFs, Pushing Regulatory Boundaries

Tuttle Capital has made waves in the crypto and financial sectors by filing for ten new leveraged exchange-traded funds (ETFs) focused on digital assets, including some targeting popular memecoins. The move has raised eyebrows among analysts, who see it as an attempt to test the limits of regulatory frameworks under Trump-era SEC leadership, known for its relatively crypto-friendly stance.


A Bold Bet on Memecoins and More

Among the ten ETFs proposed by Tuttle Capital, several stand out for their focus on memecoins associated with prominent figures, including Donald and Melania Trump. Tuttle’s filings include leveraged funds that aim to provide two times the return on tokens such as the Official Trump (TRUMP) and Melania Meme (MELANIA) tokens. These highly speculative assets are emblematic of the growing trend of meme-based cryptocurrencies, which have gained a dedicated following despite their volatility and risk.


Beyond Trump-themed tokens, Tuttle’s proposed funds also target a range of well-known cryptocurrencies that have yet to have ETF offerings. These include XRP, Solana, Litecoin, Chainlink, Cardano, Polkadot, and even the memecoin Bonk (BONK), which has a much smaller market presence.


James Seyffart, Bloomberg’s ETF analyst, remarked on Twitter that these filings are a clear case of issuers testing the boundaries of what the current SEC will permit. The funds are also notable for their leverage, as ETFs typically track the performance of an asset on a one-to-one basis. In contrast, leveraged ETFs, like those proposed by Tuttle, aim to provide returns at a multiple of that—2:1 or higher.


Testing the Trump-era Regulatory Framework

The filings come at a time when the regulatory landscape for crypto is still evolving, with the SEC under the leadership of crypto-friendly figures such as Commissioner Hester Peirce. Peirce, known for her more lenient stance on digital assets, led the creation of a crypto task force during Donald Trump’s presidency, designed to provide clarity and establish a framework for digital asset regulation.


Seyffart noted that the future of these filings will depend heavily on how Peirce’s crypto task force influences the SEC’s stance. "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," he added. The task force’s decisions will play a critical role in determining the fate of such high-leverage crypto ETFs.


Unusual ETF Structures Raise Questions

Tuttle’s filings have sparked a conversation among experts, with Bloomberg senior ETF analyst Eric Balchunas pointing out their "unusual" nature. While ETFs typically track assets in their underlying index at a one-to-one ratio, the proposed leveraged ETFs will track at a higher ratio—2:1 or more. This creates the potential for amplified returns (or losses), raising concerns about the risk levels associated with such products, especially in the volatile world of cryptocurrencies.


Balchunas further explained that the filings are made under the 40-act, which means that unless the SEC disapproves the filings, the ETFs could potentially begin trading as early as April. He also speculated on the SEC’s likely response, saying, "Will be interesting to see where the SEC draws [a] line (if at all) and why."


The ETF Surge: A Growing Trend

Tuttle’s filing comes amid a broader wave of crypto ETF filings and approvals. In December 2024, the SEC greenlit Bitcoin and Ether index ETFs from firms Hashdex and Franklin Templeton, signaling a growing acceptance of crypto-related investment products. Additionally, Osprey Funds and REX Shares both filed plans in January 2025 to launch ETFs for several memecoins, including Dogecoin (DOGE), Trump tokens, and Bonk.


Osprey Funds, a notable player in the crypto investment space, is also pushing forward with its plan to convert its Osprey Bitcoin Trust (OBTC) into a spot Bitcoin ETF after a deal with Bitwise was terminated.


A Competitive Market

As the ETF market for cryptocurrencies heats up, Tuttle’s filings come as part of a larger trend of asset managers seeking to capitalize on the growing demand for digital asset exposure. According to VettaFi, 32 Bitcoin ETFs are currently traded in the US, with 11 of them being spot Bitcoin ETFs. This growing number of ETFs reflects the increasing institutional interest in crypto assets and the diversification of investment options available to retail and institutional investors alike.


However, as more firms push for approval to offer leveraged and memecoin-focused ETFs, the SEC faces a delicate balancing act: accommodating market demand for crypto investment products while ensuring that these products are regulated in a way that safeguards investors and ensures market stability.


Conclusion

Tuttle Capital’s filings for leveraged crypto ETFs represent a bold move into the rapidly evolving world of digital asset investment products. By focusing on memecoins and leveraging digital assets, Tuttle is testing the boundaries of regulatory approval under a crypto-friendly SEC. The outcome of these filings will depend largely on how the SEC, influenced by the crypto task force led by Hester Peirce, chooses to navigate the intersection of innovation, regulation, and investor protection. As the SEC continues to shape the future of crypto ETFs, all eyes will be on how these filings are handled and whether the proposed funds will make it to market.

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