Quick Takes:
- Investment giant Tuttle Capital has filed applications with the US Securities and Exchange Commission for 2x leveraged ETFs backed by 10 cryptocurrencies, including viral meme coins that could hit the market in April.
- The crypto assets proposed for the Tuttle Capital 2x Long Daily Target ETF include Litecoin, Cardano, Ripple, Solana, Chainlink, Polkadot, BNP, Bonk, Trump, and Melania.
- Bloomberg analysts Eric Balchunas and James Seyffart believe that ETF issuers are testing the limits of the type of crypto ETPs that can and cannot be approved by the SEC. The firms are positive about the new pro-crypto SEC leadership approving investment products tracking leading cryptocurrencies.
- Tuttle Capital joins CoinShares, Grayscale, and Canary Capital to become the third investment firm to file for a Litecoin ETF in the U.S. The news surrounding the applications and increased miner and investor demand has helped LTC’s price bounce back.
Tuttle Capital Management, an investment firm specializing in exchange-traded fund (ETF) issuance, has filed for leveraged ETFs based on 10 different crypto assets, which include prominent ones like Litecoin (LTC), Ripple (XRP), and Solana (SOL), alongside the newly-launched meme coins from U.S. President Donald Trump and First Lady Melania Trump.
Asset Manager Tuttle Files 2x Leveraged ETFs Backed By LTC, SOL, XRP, BONK, TRUMP, And MELANIA
Analysts suggest the move indicates a growing interest among traditional investors in utilizing cryptocurrencies and meme-coins as investment vehicles. The proposed funds aim to provide 2x long exposure for LTC, XRP, SOL, Cardano (ADA), Chainlink (LINK), Polkadot (DOT), BNP, BONK, TRUMP, and MELANIA. According to Bloombgerg’s senior ETF analyst James Seyffart, Tuttle’s exchange-traded product (ETP) filings will be the first to track the performance of LINK, DOT, BNP, and MELANIA. He noted that this was a case of issuers “testing the limits” of what the new U.S. Securities and Exchange Commission (SEC) leadership would allow, before adding that the newly established crypto task force led by pro-crypto Commissioner Hester Peirce is anticipated to play a crucial role in determining the regulatory landscape for such investment products.
A leveraged ETF aims to amplify the daily returns of underlying security assets using financial derivatives and debt. Unlike traditional ETFs, which track the performance of an index on a one-to-one basis, leveraged ETFs may target a higher ratio for greater returns. Tuttle’s 2x leveraged crypto ETFs would return 2% to investors if the underlying index gains 1% in value – a ratio of 2:1. Bloomberg ETF analyst Eric Balchunas noted on X that Tuttle’s filings are “unusual” because several of them are for assets that don’t have a standard ETF yet and the filings falling under the Investment Company Act of 1940 means that unless the SEC disapproves them, they could potentially be available for trading on the crypto market as early as April 2025.
He also highlighted that it will be interesting to see where the securities watchdog draws the line, pointing out that the recent ETF filings to track Dogecoin (DOGE) and TRUMP haven’t been withdrawn. Last year, Tuttle Capital and Rex Shares launched the first-ever ETFs to offer 200% leveraged exposure and -200% inverse exposure to the daily price movement of MSTR – the stock of MicroStrategy, the world’s largest corporate Bitcoin custodian holding over 470,000 BTC on its balance sheet.
Four Litecoin-Backed ETFs Expected To Hit The Market
The company’s Tuttle Capital 2x Long Litecoin Daily Target ETF becomes the fourth exchange-traded product tracking the performance of Litecoin (LTC) that could be launched in the coming months. Canary Capital, CoinShares, and Grayscale are awaiting the SEC’s approval. Meanwhile, in a recent filing with the securities regulator, crypto asset manager Hashdex expressed interest in including LTC, LINK, and Avalanche (AVAX) into its basket ETF later this year, which already consists of Bitcoin (BTC) and Ethereum (ETH).
Australian asset management firm Monochrome has applied to the Chicago Board Options Exchange (CBOE) to list a Litecoin spot ETF. The Monochrome Litecoin ETF (LTCC) will be the company’s third crypto-backed ETF to trade in Australia, following the Bitcoin and Ethereum spot ETFs launched in June and November 2024.
LTC Price Climbs On The Back Of Increased Institutional Interest
The excitement surrounding the potential ETFs has been reflected in the price of LTC after climbing 4.18% to a 24-hour peak of $128. Large-scale transactions led by whales have also contributed to its latest rally.
Daily Litecoin trades exceeding $100,000 averaged $2.85 billion, indicating robust whale activity, representing over a quarter of its total market capitalization, which stands at $8.77 billion. This is a clear indication of increased institutional interest in Litecoin.
Furthermore, according to recent data from the Litecoin Foundation, Litecoin’s hash rate, a metric to measure computational on the network, hit an all-time high of 2.31 peta hashes (PH/s) on January 25. Besides, mining difficulty is also hovering near a new all-time high (ATH) of 41 million, meaning miners need to perform around 41 million hashes to successfully mine a single block on Litecoin. These milestones reflect a significant increase in Litecoin’s computational power and the rising challenge for miners to find fresh blocks and create new LTC coins.
LTC price faces key resistance around the $130 to $140 region, with support identified at $100 and a secondary support level at $90 if it declines further. Breaking past the resistance could signal further upside potential for the cryptocurrency.
At the time of writing, Litecoin (LTC) is trading at $116.12 – up 4.02% in the last 24 hours.