Tuttle Capital Files for the First Memecoin ETFs

Among the 10 proposed leveraged ETFs are funds based on XRP (XRP), Bonk (BONK), BNP, Solana (SOL), Litecoin (LTC), as well as MELANIA and TRUMP ETFs, dedicated to President Donald Trump and First Lady Melania Trump.

This move is seen as a test of the SEC’s willingness to approve such innovative financial instruments. The newly formed Crypto Task Force, led by Commissioner Hester Peirce, is expected to play a critical role in determining which assets qualify for inclusion in ETFs.

The filing for these ETFs coincides with a leadership transition at the SEC. Mark Uyeda, a known advocate for cryptocurrency, has temporarily taken over as SEC Chair, replacing Gary Gensler. Uyeda’s appointment has fueled optimism in the crypto industry about the potential approval of new crypto-focused ETFs.

The proposed ETFs include leveraged funds designed to deliver twice the daily returns—or losses—of their underlying assets. These funds utilize derivatives, such as swaps and call options, as well as borrowed capital to amplify price movements, making them high-risk but potentially high-reward investments.

According to the filings, the ETFs aim to achieve 200% of the daily returns of their assets through a combination of swaps, call options, and direct investments.

It’s important to understand the risks involved with these instruments. While leverage can significantly enhance profits, it can also lead to major losses, especially if the value of the underlying asset declines by more than 50% in a single trading session.

Tuttle Capital Management has filed ETF proposals under the 1940 Act, which regulates investment products based on pooled assets and derivatives.

One standout feature of the filings is the first-ever ETF for the memecoin Melania (MELANIA), underscoring the firm’s experimental approach. Interestingly, the leveraged MELANIA ETF was submitted before a traditional ETF for the coin—a move analysts view as highly unconventional.

Tuttle’s filings join a growing list of crypto ETFs awaiting SEC approval. Just last week, Osprey and REX Shares submitted applications for ETFs tied to Dogecoin (DOGE), BONK, XRP, and Solana.

Experts believe the SEC faces the challenge of drawing a line between assets with long-term potential and those posing higher risks due to volatility. Memecoins like Melania and BONK have raised concerns among analysts because of their instability, while ETFs based on more established assets like Solana, XRP, and Litecoin are seen as more likely to secure regulatory approval.

This wave of filings reflects the SEC’s openness to experimenting with new financial instruments while also raising questions about how far the agency is willing to go.