- Tuttle Capital Management has filed for ten different leveraged ETFs covering various cryptocurrencies and memecoins including Melania, Trump, Bonk, as well as established tokens like XRP and Solana.
- Bloomberg analysts suggest these filings test the SEC’s boundaries under new leadership, with potential trading launch by April if no objections arise from regulators.
- Major exchanges including Cboe and Nasdaq are pursuing amendments to allow in-kind redemptions for Bitcoin and Ethereum ETFs, following the SEC’s recent shift away from cash-only models.
For some reason, the world seems to be in need of an exchange-traded fund (ETF) tracking all sorts of memecoins, including a Melania ETF. Tuttle Capital Management, which focuses on “innovation”, filed on Monday for ten different leveraged ETFs.
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Apart from memecoins Melania, Trump and Bonk, there is also a filing for XRP, Solana, Litecoin, Cardano, Chainlink and Polkadot.
Following the announcement, Bloomberg ETF analyst James Seyffart said he will be working on bringing Gary Gensler back – we can only hope he is joking.
Funds Could be Trading within Three Months
Seyffart thinks this is really the ETF issuers pushing the boundaries to see what the US Securities and Exchange Commission (SEC) is like under the new leadership.
This is a case of issuers testing the limits of what this SEC is going to allow. I’m expecting the new crypto task force (led by Hester Peirce) to likely be the lynchpin in determining what’s gonna be allowed vs what isn’t.
James SeyffartFellow Bloomberg analyst Eric Balchunas commented that the filings are unusual because they involve 2x leverage funds, which typically follow 1x leverage funds – which don’t exist in the US.
Funds like these (with the exclusion of a Melania ETF) already trade in Europe, he added.
He believes the ETFs could be “out and trading” as soon as April unless the SEC objects. Note that filings by Rex-Osprey for a DOGE, TRUMP and BONK ETF (and others) have survived the week without being withdrawn.
Will be interesting to see where the SEC draws line (if at all) and why. I will say it’s been a week since Doge/Trump filing and it hasn’t been withdrawn. That’s something.
Eric BalchunasBitcoin and Ethereum In-Kind Funds Coming?
Meanwhile, Cboe BZX Exchange Inc. has filed for some changes to Bitcoin and Ethereum ETFs. The proposal aims to allow for in-kind redemptions, rather than cash.
The Exchange proposes to amend the ARK 21Shares Bitcoin ETF (the “Bitcoin Trust”) and the 21Shares Core Ethereum ETF (the “ETH Trust” and, collectively with the Bitcoin Trust, the “Trusts”), shares of which have been approved by the Commission to list and trade on the Exchange pursuant to BZX Rule 14.11(e)(4), to permit in-kind creations and redemptions.
Cboe BZX Exchange Inc.
This comes after a similar move by Nasdaq for the BlackRock Bitcoin trust. The adjustment aligns with the SEC’s recent approvals for Spot Bitcoin and Ethereum ETFs with in-kind redemptions, a shift from the previously favoured cash redemption model.
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However, Seyffart explained on X that these in-kind processes will be limited to authorised participants, not individual investors:
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