Tuttle Capital Proposes 10 Leveraged Crypto ETFs, Including Cardano

Tuttle Capital Files for Leveraged Crypto ETFs, Including Cardano

Tuttle Capital Management has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for the creation of ten leveraged cryptocurrency exchange-traded funds (ETFs). The filing, which includes popular cryptocurrencies like XRP, Solana, Litecoin, and Cardano, as well as lesser-known assets such as Chainlink and Polkadot, signals a growing interest in derivative-based ETFs within the crypto industry.

The proposed ETFs aim to provide 2x daily leveraged exposure to the underlying crypto assets, allowing investors to amplify their returns on daily market movements. However, this approach also carries substantial risks due to the volatility of the underlying assets. If approved, these ETFs would cater to a broader investor base, offering exposure to major cryptocurrencies and niche tokens.

Notably, some assets in the application, including Chainlink, Polkadot, and Melania, lack existing exchange-traded products in the U.S. market, making this a groundbreaking move. The filing represents a significant step in expanding derivative-based ETFs for crypto assets, addressing the growing demand for diversified investment options within the crypto industry.

The SEC's decision on these ETFs will set a precedent for future applications, especially in a post-Gary Gensler era. Analysts have noted that the regulatory landscape may now favor crypto-related products under the leadership of Hester Peirce and the newly formed crypto task force. Tuttle Capital's filing comes when issuers test the SEC's willingness to approve unconventional products, including derivative-based ETFs for meme coins.

The proposed ETFs are structured to provide 2x daily leveraged exposure, enabling investors to benefit from amplified returns. This approach, however, carries substantial risks due to the volatility of the underlying assets. With this filing, Tuttle Capital seeks to address the growing demand for diversified investment options within the crypto industry.

The SEC's decision on these ETFs will be closely watched, as it could influence the trajectory of crypto-related investments. The outcome will likely influence how issuers approach future ETF filings, with the growing interest in leveraged ETFs reflecting increasing demand from investors seeking higher returns despite associated risks.