Tuttle Capital Files for 10 Leveraged Cryptocurrency ETFs
Date: 2025-01-29 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
These funds will focus on popular cryptocurrencies such as Ripple (XRP), Solana (SOL), Litecoin (LTC), Chainlink (LINK), Cardano (ADA), Polkadot (DOT), as well as BNP, BONK, Official Trump (TRUMP), and MELANIA tokens.
Leveraged ETFs differ from traditional spot funds as they do not simply follow the price of assets 1:1, but aim to multiply returns. This can lead to both increased returns and increased risks for investors, requiring a more cautious approach.
ETF analyst at Bloomberg Intelligence, James Seyffarth, noted that the changing regulatory environment in the US, especially after Gary Gensler stepped down as SEC Chairman, has opened up new opportunities for riskier and more unconventional products. In particular, the launch of cryptocurrency ETFs with leverage has become possible thanks to a more flexible approach to regulation, which is now actively supported by SEC Commissioner Esther Pierce.
Moreover, Seyffarth emphasized that ETF issuers are looking to expand the scope of the permissions provided by the regulator, and now, given the new group working on rules for crypto assets, the launch of such products will be easier.
Recently, the US financial regulator extended the deadline for reviewing the application of Bitwise to launch its cryptocurrency fund 10 Crypto Index ETF until March 3, 2025. This fund will track the ten largest cryptocurrencies by market capitalization, which also highlights the growing interest in investing in cryptocurrencies using new instruments.
Thus, the emergence of new leveraged cryptocurrency ETFs on the market could be a significant step in expanding the range of financial products available to investors looking to take advantage of the growth of the crypto market, but with increased risks and opportunities for profit.
