Tuttle Capital Management has made headlines by filing for 10 leveraged crypto exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). These ETFs aim to double the daily returns of their underlying assets, presenting a high-risk, high-reward opportunity for investors looking to capitalize on the volatile world of cryptocurrency.
What Are Leveraged Crypto ETFs
Leveraged ETFs use financial derivatives and borrowing to amplify movements in the price of assets. Tuttle Capital's proposed ETFs are designed to deliver 200% of the daily returns—either gains or losses—of the underlying cryptocurrencies. This means that if the price of an asset rises by 1%, the ETF would rise by 2%, and if the price falls by 1%, the ETF would fall by 2%.
New ETFs for Popular Cryptocurrencies
Among the 10 proposed leveraged ETFs, well-known cryptocurrencies like XRP, Solana, and Litecoin are featured. They will get 2X leveraged products for the first time. Additionally, Tuttle Capital's filing includes several memecoins, known for their volatility, such as TRUMP, BONK, and MELANIA.
Testing the Limits of SEC Approval
Tuttle Capital's filing comes amid leadership changes at the SEC, bringing hope for approval of more crypto products. The SEC faces the challenge of determining the viability of approving highly speculative assets including memecoins.
The filing is part of a broader trend in the growing interest in crypto ETFs. Despite the speculative nature of these assets, the overall crypto ETF market is expanding rapidly.
