TL;DR
- Tuttle Capital files for 10 groundbreaking 2x leveraged crypto ETFs, targeting XRP, Solana, meme coins, and mid-tier tokens like Cardano and Chainlink—marking the first U.S. proposals for leveraged exposure to these assets.
- XRP and Solana ETFs emerge as frontrunners due to their market cap and institutional backing, offering 200% daily gains via derivatives, while analysts warn of high risks.
- Memecoin ETFs spark regulatory debate, testing the SEC’s stance on high-risk products amid leadership shifts. Mixed market reactions highlight excitement for innovation.
Tuttle Capital Management has submitted a groundbreaking application to the U.S. SEC for ten 2x leveraged ETFs tied to cryptocurrencies like XRP, Solana, and meme coins such as TRUMP and MELANIA. The filings, revealed on January 28, mark the first U.S. attempt to create leveraged ETFs for assets like Cardano, Chainlink, and Polkadot while pushing boundaries with volatile meme coins.
NEW: @TuttleCapital just filed for 10 different leveraged crypto asset ETFs. Including a bunch of memecoin products and assets that don't have ETPs yet. pic.twitter.com/i8X0rSdbK7
— James Seyffart (@JSeyff) January 27, 2025
XRP and Solana Lead the Charge
Among the proposed ETFs, the 2X Long XRP Daily Target ETF and 2X Long Solana Daily Target ETF stand out. These products aim to amplify daily returns—or losses—by 200%, using derivatives like swaps and call options. Analysts note that XRP and Solana, already featured in prior ETF filings, are seen as stronger candidates for approval due to their market capitalization and institutional interest.
Notably, this filing introduces the first-ever U.S. ETFs for Cardano and Chainlink, signaling a shift toward integrating mid-tier cryptocurrencies into mainstream finance. Bloomberg’s Eric Balchunas emphasized the novelty, stating, “A 2x Melania ETF before a 1x version is unusual,” highlighting Tuttle’s audacious strategy.
Memecoins Enter the Regulatory Arena
The inclusion of meme coins like TRUMP, MELANIA, and BONK has sparked debate. These assets, known for extreme volatility, test the SEC’s tolerance for high-risk products.
While TRUMP and MELANIA have gained cultural traction, their lack of established track records raises skepticism. Analysts like James Seyffart view the filings as a regulatory litmus test, with the SEC’s new crypto task force, led by Commissioner Hester Peirce, poised to determine their fate.
Regulatory Crossroads and Market Impact
The proposals arrive amid a pro-crypto shift at the SEC under Acting Chair Mark Uyeda, replacing Gary Gensler. Leveraged ETFs, governed by the 1940 Investment Company Act, could bypass lengthy reviews and launch by April 2025 unless explicitly rejected.
However, risks loom large: a 50% single-day drop in an asset’s value could erase investors’ principal, a scenario Balchunas called “extreme but not impossible” given crypto’s volatility.
Market reactions are mixed. While some applaud the expansion of crypto investment tools, critics warn of “chaos” from meme coin ETFs. Meanwhile, firms like Osprey and REX Shares are racing to file similar products, suggesting a broader industry trend toward niche crypto exposure.
