- Tuttle Capital files for 2X leveraged ETFs for cryptocurrencies like XRP, Cardano, and Bonk.
- Rex Financial and Bitwise are also exploring crypto ETF opportunities, including Dogecoin.
- Critics argue meme coin ETFs are speculative and better suited for gambling than capital markets.
Tuttle Capital Management has recently filed for a series of exotic 2X leveraged cryptocurrency ETFs. These filings, targeting assets like XRP, Cardano (ADA), and the Solana-based Bonk (BONK) meme coin, appear to test the regulatory boundaries under the SEC’s new leadership.
The move follows a recent filing by Rex Financial for a Dogecoin ETF. Meanwhile, Bitwise, a leading crypto index fund manager, has registered a new legal entity in Delaware, signaling its potential entry into the spot ETF race.
Criticism of Meme ETFs
Not everyone is enthusiastic about the prospect of meme coin ETFs. A report by the Financial Times highlights concerns over rampant speculation in such products. Critics argue that these ETFs bring more risk than value to U.S. capital markets.
Bryan Armour of Morningstar expressed skepticism, stating that meme coin ETFs might be more appropriate for a casino given their speculative nature. Unlike Bitcoin and Ethereum, which had futures markets before receiving SEC approval for spot ETFs, many of these exotic meme coins lack a similar framework.
Could Meme Coin ETFs Be Approved?
Despite the criticism, industry experts acknowledge the possibility of approval for these unconventional ETFs. Nate Geraci, president of ETF Store, remarked, “Anything is possible,” leaving the door open for regulatory acceptance.
With the SEC having recently greenlit spot Bitcoin and Ethereum ETFs, these filings could mark the next phase of development—or controversy—in the crypto ETF market. However, concerns about speculative risks and the lack of robust futures markets for meme coins could pose significant hurdles.
As Tuttle Capital and other firms push the boundaries, the debate over the role of meme coin ETFs in regulated markets is likely to intensify.
