Fund manager Tuttle Capital filed applications for ten altcoin exchange-traded funds (ETFs) with the US Securities and Exchange Commission (SEC). Amongst 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 within the SEC’s leadership, as pro-crypto Mark Uyeda replaced crypto critic Gary Gensler because 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 will provide twice the each day gains or losses of their underlying tokens.
Speculations about $SOL and $XRP ETFs have been spreading for some time, but meme coin ETFs are a wholly latest, 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 $MELANIA.
Bloomberg Intelligence suggests issuers are testing the waters to see what the brand new SEC administration would allow.
The query is – where will regulators draw the road?
Tuttle Capital Could Set Precedent for Meme Coins Like Solaxy ($SOLX)
If the SEC approves Tuttle Capital’s ETFs, they might be available available on the market by April.
This could set a precedent for meme coin ETFs, and we’d see similar financial products for tons of of other tokens.
Nonetheless, 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 goals to forestall network congestion, reduce fees, and speed up transfers by offloading a part of transactions to its side chain. There are currently no Layer-2 networks for Solana, so Solaxy pioneers the area of interest.
This unique utility helped Solaxy gain momentum and lift over $15.6M on presale. One $SOLX now costs $0.001618, which is the bottom possible entry point into the project.
It’s true that exchange listings typically boost token value, and Solaxy already has them planned.
But when (or when) $SOLX ETF rolls out, we’d see a really meteoric rise.
Take $BTC, for instance.
The primary spot $BTC ETF application was filed in 2013, but only in 2021 was the primary $BTC ETF launched in Canada. Inside one month after the news, $BTC rose from $33K to $57K and inside two to $60K.
When BlackRock filed for the primary 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 seems that Solaxy launches just in time for a latest wave of institutional adoption, which could bring its early supporters amplified returns.
Can Meme Coin ETFs Go Mainstream?
The consequences of the brand 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 chances are high.
The crypto market could also be entering a latest bull cycle where institutional investors finally judge projects like Solaxy for his or her technology fairly than meme facade.
Nonetheless, we remind you that the crypto market is amazingly volatile, and no gains are guaranteed. DYOR and keep a cool head in any respect times.