1
Another financial institution has filed for crypto ETFs, but some in the crypto community aren't sure how they feel about the development. IBTimes US

KEY POINTS

  • Bloomberg's Seyffart noted that the filings highlight how issuers are 'testing' the SEC's limits on which crypto ETFs to allow
  • Eric Balchunas noted that the ETFs could be trading as early as April unless the SEC rejects them
  • The crypto community on X is divided over the filings, with some not being pleased with the development

Asset manager Tuttle Capital Management has reportedly filed for 10 different leverage cryptocurrency exchange-traded funds (ETFs), and a Bitcoin ETF isn't one of them, marking a new era in crypto ETF filings beyond the world's largest crypto asset by market cap.

Senior Bloomberg ETF analysts James Seyffart and Eric Balchunas made the revelation on X Monday, triggering excitement as well as doubts among crypto holders of the altcoins and memecoins the products will track.

A Move Away from the Common $BTC, $ETH ETFs

As per the analysts' posts regarding the development, Riverside-based Tuttle Capital filed with the U.S. Securities and Exchange Commission (SEC) to issue leveraged ETFs for the following tokens: XRP, Solana (SOL), Official Trump (TRUMP), Litecoin (LTC), Melania (MELANIA), BONK, BNP, Cardano (ADA), Chainlink (LINK), and POLKADOT.

According to Seyffart, Tuttle Capital is the first financial institution to ever make a U.S. exchange-traded product (ETP) filing "for anything tracking Chainlink, Cardano, Polkadot, BNP, and MELANIA.

He further noted that Tuttle Capital's filings highlight how issuers are "testing the limits of what this SEC is going to allow." Seyffart expects the recently-formed crypto task force led by "Crypto Mom" Commissioner Hester Peirce to "likely be the lynchpin" in determining which crypto ETFs are allowed and which aren't.

Balchunas also pointed out that in theory, Tuttle Capital's ETFs "could be out and trading in April" unless the SEC rejects the asset management firm's applications.

Tuttle's Move Draws Mixed Reactions from Crypto Users

The big news was welcomed by some crypto holders, while others said they were "embarrassed" with how the crypto ETF circle has evolved.

One user said only three out of the 10 cryptocurrencies on the list were "decent" enough to be considered for a crypto ETF.

Several users were glad an ADA ETF has been applied for. Cardano is often recognized as a more efficient blockchain than those that use a Proof-of-Work (POF) mechanism such as the Bitcoin network.

Some were pleased that memecoin ETFs were being considered, since ETFs that tracked the price of memecoins weren't even in the table last year even after BTC and ETH ETFs were approved.

Other were just not into the idea of other crypto ETFs. Bitcoiner Thutski said the filings sound "like a recipe for chaos."

Memecoin, Altcoin ETF Filings on the Rise

Tuttle Capital isn't the first traditional financial institution to file for a potential meme token ETF. Last week, ETP firm REX Shares filed for a wide range of crypto ETFs but did include funds for Bitcoin and Ethereum.

There have also been other previous filings for altcoin ETFs, including for SOL, LTC, Hedera (HBAR), and XRP.

It remains to be seen whether Tuttle's move will further attract more traditional institutions into applying to issue for ETFs beyond what's already been filed.

Originally published on IBTimes