Bloomberg analyst Eric Balchunas noted that the SEC had not withdrawn Tuttle’s ETF filing yet, suggesting a potential approval.
Tuttle Capital Management, an investment advisory firm based in Riverside, Connecticut has recently filed applications with the United States Securities and Exchange Commission (SEC) to launch ten leveraged cryptocurrency exchange-traded funds (ETFs).
These proposed ETFs aim to provide 2x leveraged exposure to a variety of digital assets, including XRP XRP $2.19 24h volatility: 1.2% Market cap: $129.02 B Vol. 24h: $3.12 B , Solana SOL $145.9 24h volatility: 0.8% Market cap: $77.47 B Vol. 24h: $4.29 B , Litecoin LTC $84.78 24h volatility: 0.3% Market cap: $6.44 B Vol. 24h: $266.05 M , Cardano ADA $0.59 24h volatility: 0.7% Market cap: $21.21 B Vol. 24h: $716.32 M , Chainlink LINK $13.40 24h volatility: 4.3% Market cap: $9.09 B Vol. 24h: $571.95 M , Polkadot DOT $3.43 24h volatility: 0.5% Market cap: $5.23 B Vol. 24h: $172.31 M , Binance Coin BNB $643.6 24h volatility: 0.4% Market cap: $93.88 B Vol. 24h: $539.04 M , Bonk BONK $0.000014 24h volatility: 1.5% Market cap: $1.10 B Vol. 24h: $200.26 M , and the newly introduced meme coins TRUMP TRUMP $9.28 24h volatility: 0.2% Market cap: $1.86 B Vol. 24h: $426.11 M and MELANIA MELANIA $0.21 24h volatility: 3.3% Market cap: $131.80 M Vol. 24h: $10.83 M .
Understanding Leveraged ETFs
For clarity, leveraged ETFs are financial instruments that utilize derivatives and debt to amplify the daily returns of an underlying asset or index. For instance, a 2x leveraged ETF seeks to achieve twice the daily performance of its benchmark.
While these products can offer significant gains, they also come with increased risk, especially in volatile markets like cryptocurrencies.
With the application for ten crypto-related ETFs, Tuttle Capital Management has become the first financial advisory firm to file for such a multitude of ETFs at once.
Currently, the crypto industry has seen the approval of spot Bitcoin, Ethereum, and Solana ETFs in regions such as the United States, Hong Kong, Australia, and Argentina. However, ETFs for assets like XRP, Cardano, Chainlink, Polkadot, BNB, Bonk, TRUMP, and MELANIA have yet to be introduced.
Bloomberg ETF analyst Eric Balchunas commented on this development, noting that Tuttle’s filing is a 40 Act filing, which means “in theory” these products could be out and trading by April unless the SEC disapproves them.
“Will be interesting to see where the SEC draws the 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 something,” he added.
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
The Crypto ETF Market since SEC Approval
Meanwhile, since the SEC’s approval of the first spot crypto ETFs in January 2024, the market has experienced significant growth. Bitcoin ETFs, for example, have seen substantial inflows, with holdings surpassing $55 billion within weeks of their launch.
Bloomberg Senior ETF Analyst Eric Balchunas remarked on this rapid growth, stating that the performance of Bitcoin ETFs exceeded expectations, with a faster and more intense “second wind” than anticipated.
The success of Bitcoin ETFs has paved the way for other crypto-based ETFs, such as those for Ethereum and Solana, which have also garnered investor interest. Analysts predict that 2025 will see a wave of new crypto ETFs, potentially expanding the range of digital assets available to investors.
However, the introduction of leveraged crypto ETFs adds a new dimension to the market. While they offer the potential for amplified gains, they also carry heightened risks, particularly in the inherently volatile digital assets market. Investors are advised to approach these products with caution and conduct thorough research before investing.
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