Exchange-Traded Fund (ETF) Provides Tuttle Capital Management is “Testing the Waters” in the Crypto-Fvindly Trump administration with Ten 2x geared ETF proposals for US Securities and Exchange Commission (SEC) Monday, including those who track Donald and Melania Trump’s official Memecoins.
Tuttle suggested the first EVER ETFs that track 200% return on the following tokens: chainlink (link), Cardano (ada), polkadot (dot), melania (melania), xrp (xrp), bonk (bonk), solana ( Sun), Litecoin (LTC) and Trump (Trump).
The daily performance return of these tokens is traced and generated through swaps, call options and direct investments according to the archiving. However, investors in the chance to lose all their capital if prices fall significantly due to the geared nature of these products.
“Using leverage reinforced returns, but also enlarges losses where investors potentially lose their entire principal within a single trading day if the value of the underlying asset decreases by more than 50%,” warned the archiving.
Although 50% drops are rare, the ALTCOIN markets are notorious to suddenly fall 10% in times of market stress, as they did on Monday. A 10% slide would mean that the ETFs fell at least 20% before fees.
Bloomberg Intelligence -Analyst James Seyffart said in an X post that the archives were probably a test of what Trump administration can allow.
“This is a case of issuers testing the limits of what this SEC will allow,” Seyffart said. “I expect the new crypto -taskforce (led by @hesterpeirce) to probably be lynchpin to decide what will be allowed vs what is not.”
“A 2x Melanie Etf (SIC) before a 1x Melania ETF has been filed. It’s unusual, ”noted Bloomberg Intelligence analyst Eric Balchunas.
Balchunas added that the ETFs could technically be out in April unless explicitly rejected by SEC, as these were an “ACT 40” archiving – which allows for potential trade, if not rejected within the review period because of its structured process to review and approval of investment products.
