Tuttle Capital Management made a significant move in the financial world by filing for ten leveraged crypto ETFs with the SEC. These ETFs aim to double the daily returns of underlying assets, offering high-risk opportunities for investors looking to profit from cryptocurrency volatility.
What are Leveraged Crypto ETFs?
Leveraged crypto ETFs use financial derivatives and borrowing to amplify asset price movements. Tuttle Capital's proposed ETFs aim to provide 200% daily returns on gains or losses of the underlying cryptocurrencies. Suitable for experienced traders, these ETFs reflect the market's volatility.
New ETFs for Popular Cryptocurrencies
Among the proposed ETFs, notable cases include those for well-known cryptocurrencies like XRP, Solana, and Litecoin, each receiving a 2X leveraged product for the first time. Additionally, Tuttle's proposal includes memecoins like TRUMP, BONK, and MELANIA, with the latter marking the first-ever leveraged ETF for this type of asset.
Testing the Limits of SEC Approval
Tuttle Capital's filing coincides with leadership changes at the SEC, where pro-crypto Mark Uyeda has replaced Gary Gensler as acting chair. The industry remains eager for more crypto-focused approvals, though it remains uncertain how the SEC will respond to these leveraged ETFs given the speculative nature of the assets.
Tuttle Capital's filing is part of a broader trend towards increased interest in crypto ETFs. Despite the speculative nature of some assets, the overall crypto ETF market continues to expand rapidly.
