Fund manager Tuttle Capital filed applications for ten altcoin exchange-traded funds (ETFs) with the US Securities and Exchange Commission (SEC). Among them are Chainlink ($LINK), Cardano ($ADA), and even meme coins like Bonk ($BONK) and Official Trump ($TRUMP).
These filings come on the back of recent changes in the SEC’s leadership, as pro-crypto Mark Uyeda replaced crypto critic Gary Gensler as the agency’s chair.
US Fund Managers Test the Waters
Tuttle Capital already offers several leveraged $BTC and $ETH ETFs. Now, the firm seeks approval for ten 2x ETFs, including $XRP, $SOL, and $MELANIA. Essentially, these are ETFs that would provide twice the daily gains or losses of their underlying tokens.
Speculations about $SOL and $XRP ETFs have been spreading for a while, but meme coin ETFs are an entirely new, experimental concept.
Last week, REX Shares also filed for a $DOGE ETF – perhaps viewing it as a more predictable and sustainable investment than $TRUMP or $MELANIA.
Bloomberg Intelligence suggests issuers are testing the waters to see what the new SEC administration would allow.
The question is – where will regulators draw the line?
Tuttle Capital Could Set Precedent for Meme Coins Like Solaxy ($SOLX)
If the SEC approves Tuttle Capital’s ETFs, they could be available on the market by April.
This would set a precedent for meme coin ETFs, and we might see similar financial products for hundreds of other tokens.
However, utility-backed meme coins have higher odds of getting the green light. One such project is Solaxy ($SOLX), a Solana Layer-2 solution with a Pepe mascot.
Solaxy aims to prevent network congestion, reduce fees, and speed up transfers by offloading part of transactions to its side chain. There are currently no Layer-2 networks for Solana, so Solaxy pioneers the niche.
This unique utility helped Solaxy gain momentum and raise over $15.6M on presale. One $SOLX now costs $0.001618, which is the lowest possible entry point into the project.
It’s true that exchange listings typically boost token value, and Solaxy already has them planned.
But if (or when) $SOLX ETF rolls out, we might see a truly meteoric rise.
Take $BTC, for example.
The first spot $BTC ETF application was filed in 2013, but only in 2021 was the first $BTC ETF launched in Canada. Within one month after the news, $BTC rose from $33K to $57K and within two to $60K.
When BlackRock filed for the first US $BTC ETF in June 2023, $BTC was trading at $27K. Since $BTC ETFs began trading on the US spot market in January 2024, it hit $100K.
It appears that Solaxy launches just in time for a new wave of institutional adoption, which could bring its early supporters amplified returns.
Can Meme Coin ETFs Go Mainstream?
The effects of the new pro-crypto administration are already evident. While the SEC hasn’t yet approved Tuttle Capital’s applications, it hasn’t turned them down either, so the odds are high.
The crypto market may be entering a new bull cycle where institutional investors finally judge projects like Solaxy for their technology rather than meme facade.
However, we remind you that the crypto market is extremely volatile, and no gains are guaranteed. DYOR and keep a cool head at all times.
