Tuttle Capital Seeks Approval for Leveraged XRP, Cardano, and Multi-Crypto ETFs

• Tuttle Capital has filed for SEC approval of ten leveraged crypto ETFs, including XRP, Cardano, Solana, and meme tokens, offering 2x daily exposure to these assets.
• The move tests the SEC’s evolving regulatory environment under new leadership.

The race to launch crypto-focused exchange-traded funds (ETFs) continues to heat up in the U.S. Following the resignation of former SEC Chair Gary Gensler, filings for crypto-related ETFs have surged. The latest applicant is asset manager Tuttle Capital, which has applied for the approval of ten leveraged crypto ETFs, marking a significant step in expanding derivative-based investment products.

Notably, Tuttle Capital’s filing with the U.S. Securities and Exchange Commission (SEC) aims to offer derivative-based ETFs that provide leveraged exposure to major cryptocurrencies like XRP , Cardano, Solana, Litecoin, and Chainlink. The product line also includes meme-inspired tokens such as Trump, Melania, Bonk, and Polkadot.

This is the first U.S. exchange-traded product (ETP) proposal for several of these assets, including Chainlink, Cardano, Polkadot, and Melania.

The proposed ETFs will offer investors a 2x long exposure, doubling the daily price movements of the underlying assets. While such leveraged products appeal to traders seeking amplified returns, they also carry heightened risks, particularly in the volatile cryptocurrency market.

Testing Regulatory Boundaries

The filing has sparked significant discussion within the crypto and financial communities. Bloomberg analyst James Seyffart highlighted the unusual nature of the filing, noting that some assets lack prior ETPs. Additionally, senior Bloomberg ETF analyst Eric Balchunas remarked that Tuttle Capital’s move to file for 2x leveraged products before simpler 1:1 exposure ETFs deviates from the norm.

The timing of this filing is pivotal. Analysts believe that regulatory sentiment may be shifting in a more crypto-friendly direction under new SEC leadership, as the pro-crypto Commissioner Hester Peirce heads the regulatory body’s crypto task force. This has emboldened asset managers like Tuttle Capital to push the limits of what the SEC might approve.

Seyffart hinted at the speculative nature of these filings, jokingly suggesting that Gensler’s absence has led to an influx of unconventional ETF applications. He underscored that these proposals could serve as a litmus test for how far the SEC is willing to go in approving innovative crypto-based products.

A Broader Trend in Crypto ETFs

Tuttle Capital’s ambitious filing comes on the heels of Bitwise’s recent application for a Dogecoin spot ETF, marking the first step in the approval process. Both applications highlight the growing appetite for diverse crypto investment vehicles, from meme coins to major blockchain projects.

If approved, Tuttle Capital’s ETFs could hit the market by April 2025. However, the SEC’s decision remains uncertain, as the agency evaluates whether such products align with its broader mandate to protect investors while fostering innovation.

With these filings, Tuttle Capital is not only aiming to broaden the spectrum of crypto ETFs but also testing the SEC’s evolving stance in an industry hungry for regulatory clarity and investment options.