Tuttle Capital’s 10 Leveraged Crypto ETFs: XRP, Solana, and Memecoins

• Crypto innovation continues as Tuttle Capital files for leveraged ETFs tracking memecoins like Trump and Melania, blending digital assets with finance.
• The new 2x leveraged ETFs include assets like XRP, Solana, and Litecoin, amplifying returns but increasing risk compared to standard ETFs.
• Tuttle’s filing marks the first U.S. asset manager to propose leveraged ETPs for crypto, challenging the SEC’s evolving regulatory stance.

Crypto innovates in finance yet again with Tuttle Capital, a Delaware-based company, filing for leveraged ETFs that are based on memecoins. In the new funds, there are the Official Trump and Melania Meme tokens, which show the way toward the integration of digital assets into traditional finance. This is because the firm is seeking to meet the increasing market need for new and diverse digital assets in the financial market.

The filing features ten 2x leveraged ETFs which include such digital assets as XRP, Solana, Litecoin, Cardano, Polkadot, and memecoins named Trump and Melania. Leveraged ETFs are inversely correlated and provide double the return of their underlying assets for the day. But this also raises the risks because they are not as stable as the traditional ETFs that are created to mirror the performance of the asset in question one-on-one.

Crypto ETFs Break New Ground

James Seyffart from Bloomberg mentioned that Tuttle’s filing is the first one of this kind. The company is the first US-based asset manager to suggest leveraged ETPs that will track cryptocurrencies such as Chainlink, Cardano, Polkadot, and even the Melania Meme token. This filing expands the possibilities of how digital assets can be served up to the broader investing public.

According to Bloomberg’s Eric Balchunas, the filings are rather odd because most of the proposed funds do not even have a simple spot ETF version. However, he also noted that given these are filings under the 40-Act, they can be approved by April unless the SEC intervenes. Given that the applications for Dogecoin and Trump-themed ETFs have not been pulled, Balchunas observed that the SEC may be more receptive to digital assets.

The U.S. Securities and Exchange Commission (SEC) has been through many changes in the recent past. The leadership of Commissioner Hester Peirce has seen the agency embrace more digital assets products. Peirce created a special crypto working group that was aimed at eliminating the uncertainty within the legal framework, and this has made more managers of assets to venture into crypto ETFs.

SEC Opens Doors for Crypto

Seyffart said that Tuttle’s filing was a challenge to the new approach the SEC was taking. Since Bitcoin and Ethereum spot ETFs have been approved, many asset managers are ready to try new products linked to digital assets. These products may thus open the door for more crypto-related ETFs in the future as more investors are interested in these products.

On December 18th, the SEC gave its approval to Bitcoin and Ethereum index ETFs from Hashdex and Franklin Templeton, approving them with “accelerated approval”. Such ETFs, which started trading on the Cboe BZX and Nasdaq exchanges, have paved the way for other crypto-based ETFs.

If leveraged memecoin ETFs by Tuttle work out, the future of the crypto asset investment can be dramatically changed. With the SEC becoming more open to the cryptocurrency industry, investors may gain exposure to a broader variety of new digital asset investments in the near future.