A new institutional investor-focused ETF product tracking XRP, Cardano, BONK, and other altcoins has been filed with the US SEC.
Tuttle Capital Management has made a bold move to test the “crypto-friendliness” of the new U.S. administration. The asset management firm has filed for several cryptocurrency exchange-traded funds (ETFs) with the Securities and Exchange Commission (SEC).
The XRP and Diverse ETF Offering with Double the Returns
Some of the assets in Tuttle’s filing include XRP, Cardano, Solana, and Litecoin. Trump, Melania, Bonk, BNP, Chainlink, and Polkadot are others. A notable thing with this filing is that Tuttle seeks to provide double the daily return of each underlying asset.
Financial experts consider this “double the daily return” offer a high-risk and high-reward investment product. They view it as pushing the limits of traditional finance.
This implies that Tuttle’s filing might require more scrutiny from the SEC. Market observers are keen to see how the new leadership of the SEC would respond to the development. Notably, the SEC is under new leadership with the exit of former SEC Chair Gary Gensler, who maintained a tough stance on crypto asset regulation.
Solana-based Bonk (BONK) memecoin and the other new coins – Trump and Melania – will generate the most interest among crypto enthusiasts. They will watch how the SEC responds, given that not everyone favors memecoin ETF filings.
Some within the industry argue about their speculative nature and do not consider them worth owning an ETF. One of such memecoin critics, Bryan Armour of Morningstar, insists that such products are not fit for the U.S. capital market.
According to Armour, some of these memecoins with their own ETF filings lack a futures market. This contrasts with Bitcoin and Ethereum, which already had futures-based products before the SEC gave regulatory approval for their ETFs.
At the beginning of this week, Nate Geraci, President of the ETF Stores, hinted that he was anticipating a flurry of cryptocurrency ETF filings. As to the approval of these filings, Geraci did not dismiss them. He noted that “anything is possible” in the crypto regulatory space.
Will New SEC Leadership Favor Crypto ETFs?
All eyes will focus on the U.S. SEC to see how it would address these filings by Tuttle Capital Management. In the interim, Mark Uyeda, a Republican SEC Commissioner, recently regained control following Gensler’s exit.
Uyeda will oversee activities at the SEC pending Senate confirmation of President Donald Trump’s nominee, Paul Atkins, a former commissioner. It is unclear if Uyeda will make any significant approvals while in charge or defer until Atkins takes full control.
Regardless, the crypto industry is highly optimistic about a new shift in regulation that might favor the sector’s growth. Moving forward, how events will pan out remains of interest to stakeholders.
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