Tuttle Capital Management is testing the waters with a set of filings to the U.S. Securities and Exchange Commission (SEC), proposing the first-ever exchange-traded funds tied to Chainlink (LINK), Cardano (ADA), and Polkadot (DOT).
Among the 10 proposed leveraged ETFs is the first-ever ETF tied to the Melania meme coin (MELANIA), along with leveraged products for XRP (XRP), Bonk (BONK), BNP, Solana (SOL), Litecoin (LTC), and the meme coin tied to U.S. President Donald Trump (TRUMP).
“This is a case of issuers testing the limits of what this SEC is going to allow,” Bloomberg Intelligence analyst James Seyffart wrote on X. “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.”
The investment advisory firm’s filings come as the SEC undergoes a shakeup, with pro-crypto Acting Chair Mark Uyeda replacing Gary Gensler, fueling industry hopes for approval under a President Trump administration.
The filings propose 2x leveraged ETFs, which are designed to deliver twice the daily returns—or losses—of their underlying assets.
Leveraged ETFs use financial derivatives and borrowing to amplify movements in the price of assets, making them high-risk, high-reward investment products.
The ETFs aim to track 200% of their reference assets’ daily performance through swaps, call options, and direct investments, per the filing.
However, the funds are not without significant risk, as highlighted in the filing. Using leverage amplifies returns but also magnifies losses, with investors potentially losing their entire principal within a single trading day if the underlying asset’s value drops by more than 50%.
“This is a 1940 Act filing,” Bloomberg senior ETF analyst Eric Balchunas explained, referring to the regulatory framework that governs investment products combining assets and derivatives.
“So in theory, unless the SEC disapproves them, they could be out and trading in April,” Balchunas said on Monday.
It also marks the first ETF filing for the Melania meme coin (MELANIA). Including such an asset shows the experimental nature of these proposals.
“A 2x Melanie ETF before a 1x Melania ETF has been filed, that is unusual,” Balchunas noted, pointing to Tuttle’s audacious approach.
Tuttle’s filings join a growing list of crypto ETFs awaiting SEC review. Last week, Osprey and REX Shares filed for products tied to Dogecoin (DOGE), BONK, XRP, and Solana.
“Will be interesting to see where the SEC draws the line (if at all) and why, Balchunas added. “I will say it’s been a week since the Doge/Trump filing, and it hasn’t been withdrawn. That’s something.”
However, not all products are created equal in the eyes of analysts. While meme coins like Melania and BONK draw headlines, their extreme price volatility leaves many experts skeptical of their chances for approval.
On the other hand, ETFs tied to more established assets, like Solana, XRP, and Litecoin, are seen as having better odds of passing regulatory scrutiny.
Market watchers suggest additional ETF filings could soon follow, expanding the field of crypto-backed financial products.
“The filing shows the industry’s unwavering dedication to deploying innovation and satisfying diverse market demands by adding assets like XRP, Solana, and even newly issued tokens such as TRUMP and MELANIA,” Saravanan Pandian, CEO and Founder of KoinBX told Decrypt.
“On the other hand, the same action leads us to very important questions in the areas of regulation,” Pandian added. “If these ETFs get approved, they could pave the way for new participants in the market, but the SEC needs to ensure risk mitigation and transparency is in place.”
Edited by Sebastian Sinclair
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