Tuttle Capital Management has filed for 10 leveraged crypto ETFs with the U.S. SEC. These ETFs aim to double the daily returns of their underlying assets, offering a high-risk opportunity in the crypto market.
What Are Leveraged Crypto ETFs?
Leveraged ETFs use financial derivatives and borrowing to amplify asset price movements. Tuttle Capital's proposed ETFs are designed to deliver 200% of the daily returns—both gains and losses—of the underlying cryptocurrencies. This means a 1% rise in asset price results in a 2% ETF rise, and vice versa. A 50% drop could result in a complete loss of capital in a single day, making these ETFs suited for experienced traders aware of crypto market volatility.
New ETFs for Popular Cryptocurrencies
Among the 10 proposed ETFs are well-known cryptocurrencies like XRP, Solana, and Litecoin, marking their first 2X leveraged products—**2X Long XRP Daily Target ETF**, **2X Long Solana Daily Target ETF**, and **2X Long Litecoin Daily Target ETF**. They track daily performance of their assets, amplifying returns and losses. Tuttle Capital also includes memecoins like **TRUMP**, **BONK**, and **MELANIA** in their filing. Notably, MELANIA signifies the first-ever leveraged ETF for this asset.
Testing the Limits of SEC Approval
Tuttle Capital's filing coincides with a leadership change in the SEC, with acting chair **Mark Uyeda** replacing Gary Gensler, raising hopes for crypto-related approvals. ETF expert James Seyffart from Bloomberg Intelligence sees it as a test of the SEC's boundaries. The new crypto task force led by **Hester Peirce** will determine the approvals.
Tuttle Capital's filing highlights the growing interest in crypto ETFs. Asset managers like Grayscale and Coinshares have also filed for ETFs tied to cryptocurrencies. Despite speculative assets, the overall crypto ETF market is expanding rapidly.
