Tuttle Capital Seeks Approval for First Leveraged ETFs Featuring TRUMP, MELANIA, Cardano, and Others.

Tuttle Capital Management Proposes 2x Leveraged ETFs Tracking Memecoins and Major Cryptos to SEC

Tuttle Capital Management is testing the waters with a bold move to introduce ten new 2x leveraged exchange-traded funds (ETFs) that track popular cryptocurrencies, including memecoins associated with Donald and Melania Trump. Filed with the U.S. Securities and Exchange Commission (SEC) on Monday, these proposals include leveraged ETFs aimed at amplifying returns on assets like Chainlink (LINK), Cardano (ADA), Polkadot (DOT), Melania (MELANIA), XRP (XRP), Bonk (BONK), Solana (SOL), Litecoin (LTC), and Trump (TRUMP).

The proposed ETFs will track daily performance and generate returns through a combination of swaps, call options, and direct investments. However, investors should be aware of the risks involved. Due to the leveraged nature of these funds, there is a significant chance of losing the entire investment if prices fall sharply. According to the filing, a drop in the value of an underlying asset by more than 50% could wipe out the principal within a single trading day.

Although 50% drops are uncommon, altcoin markets are notorious for sudden fluctuations, like the 10% drop seen on Monday, which could result in a 20% decline in ETF values, before accounting for fees.

Bloomberg Intelligence analyst James Seyffart speculated on Twitter that these filings are a test of what the SEC under the Trump administration might allow. “This is a case of issuers testing the limits of what this SEC is going to allow,” Seyffart remarked. He also pointed out that Hester Peirce, who leads the new crypto task force, will play a key role in determining which proposals will be approved.

Bloomberg’s Eric Balchunas also highlighted the unusual nature of these filings, noting that the 2x leveraged Melania ETF was filed before a 1x version. He added that these ETFs could technically begin trading in April, unless the SEC explicitly rejects them, thanks to the “Act 40” filing, which sets a structured review process for investment products.