Filings for crypto-related ETFs have escalated since former chair Gary Gensler resigned, with Tuttle Capital applying for 10 different leveraged products.
Prominent Bloomberg analyst James Seyffart confirmed the latest filing from asset manager Tuttle Capital in a Monday post. According to the tweet, the investment advisory firm applied to the US Securities and Exchange Commission (SEC) to approve listing derivative exchange-traded funds (ETFs) of ten different crypto assets.
For context, a derivative-based ETF gives investors leveraged exposure to an underlying crypto asset. Although they come with high risks, the product has gained traction among certain market users with an appetite to amplify returns.
New ETF Filing for XRP and Cardano
Tuttle Capital’s filing includes exposure to major cryptocurrencies like XRP, Solana, Litecoin, and Cardano. The asset manager also seeks approval to list leveraged products for Chainlink, Polkadot, BNP, and meme coins like Trump, Melania, and Bonk.
Meanwhile, Seyffart pointed out that some of the assets in the filing have no exchange-traded products (ETPs). Specifically, the prominent analyst stated that Tuttle Capital’s filing is the first US ETP for anything tracking Chainlink, Polkadot, Cardano, BNP, and Melania.
The product will provide investors with a 2x long (i.e., 2:1 exposure and reward ratio) of the daily movements of the crypto assets earlier mentioned.
Filings Testing SEC’s Limits
US President Donald Trump has delivered some of his promises to the crypto industry, which included shuffling things on the regulatory front. Market analysts have speculated that with former SEC chair Gary Gensler now gone, ETF approval will be easier under the new pro-crypto hierarchy.
However, Seyffart implied that the new enabling environment has birthed unusual applications, as seen in some of the assets Tuttle Capital filed for. He even joked about starting a movement to reinstate Gensler as US SEC chair.
Seyffart explained that this situation involves issuers pushing the boundaries of what the SEC might permit. He added that the new crypto task force, headed by Hester Peirce, will likely play a major role in deciding what will be approved and what will not.
Bloomberg’s senior analyst Eric Balchunas also commented on the filing, noting that a 2x filing before a 1:1 exposure ratio is unusual. He also disclosed the application is a 40 Act filing and could be in the market in April unless the SEC disapproves.
Meanwhile, the filing came almost a week after Bitwise registered its Dogecoin spot ETF with the Delaware Department of State. Notably, the registration is the first step in applying for an ETF.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.