Tuttle Capital Proposes First-Ever 2x Leveraged ETFs for TRUMP, MELANIA, Cardano, and More
Tuttle Capital Management has submitted proposals to the U.S. Securities and Exchange Commission (SEC) for ten 2x leveraged exchange-traded funds (ETFs), including the first-ever ETFs tracking the official memecoins of Donald and Melania Trump. The move signals the firm’s attempt to gauge the regulatory stance of the crypto-friendly Trump administration.
The proposed ETFs aim to deliver 200% of the daily performance of a selection of cryptocurrencies, including Chainlink (LINK), Cardano (ADA), Polkadot (DOT), Melania (MELANIA), XRP (XRP), Bonk (BONK), Solana (SOL), Litecoin (LTC), and Trump (TRUMP). According to the filing, the returns will be generated through a combination of swaps, call options, and direct investments.
While leveraged ETFs can amplify gains, they also significantly increase risk. The filing warns that investors could lose their entire capital if token prices drop substantially.
“Using leverage amplifies returns but also magnifies losses, with investors potentially losing their entire principal within a single trading day if the underlying asset’s value drops by more than 50%,” the filing cautioned.
Although such extreme declines are uncommon, altcoins are known for sudden price swings. On Monday, the market saw a 10% decline in several altcoins, which would have resulted in at least a 20% drop in these ETFs before fees.
Bloomberg Intelligence analyst James Seyffart noted on X (formerly Twitter) that the filings appear to be a strategic test of the SEC’s willingness to approve crypto-related financial products under the new administration.
“This is a case of issuers testing the limits of what this SEC is going to allow,” Seyffart stated. “I’m expecting the new crypto task force (led by @HesterPeirce) to likely be the lynchpin in determining what’s gonna be allowed vs what isn’t.”
Another Bloomberg Intelligence analyst, Eric Balchunas, pointed out an unusual aspect of the filings.
“A 2x Melanie ETF (sic) before a 1x Melania ETF has been filed. That is unusual,” Balchunas remarked.
Balchunas further explained that, under the “Act 40” filing process, these ETFs could technically begin trading as early as April unless explicitly rejected by the SEC. This regulatory framework allows certain investment products to move forward if not actively disapproved within the review period.
The proposals mark a significant step in integrating leveraged crypto products into traditional financial markets, potentially opening the door for more innovative trading instruments in the future.
