Emily Walker
Fund manager Tuttle Capital has submitted requests for ten altcoin exchange-traded funds (ETFs) to the US Securities and Exchange Commission (SEC). This includes popular cryptocurrencies like Chainlink ($LINK) and Cardano ($ADA), as well as meme coins such as Bonk ($BONK) and Official Trump ($TRUMP).
These applications arrive after a shift in SEC leadership, with the pro-crypto Mark Uyeda taking over from crypto skeptic Gary Gensler.
Exploring New Opportunities in Fund Management
Tuttle Capital currently has several leveraged ETFs for Bitcoin ($BTC) and Ethereum ($ETH). The firm is now seeking approval for ten 2x ETFs that will include tokens like $XRP, $SOL, and $MELANIA, which are designed to deliver double the daily performance of the underlying digital assets.
There has been ongoing speculation regarding $SOL and $XRP ETFs, but the idea of meme coin ETFs is a novel and untested approach.
Recently, REX Shares also filed for a $DOGE ETF, possibly considering it as a more stable investment compared to $TRUMP or $MELANIA.
Bloomberg Intelligence notes that this could be an exploratory move by issuers to gauge the new SEC administration’s stance on such products.
The pivotal question remains — where will the regulators establish their boundaries?
Potential Impact of Tuttle Capital’s ETFs on Meme Coins Like Solaxy ($SOLX)
If Tuttle Capital gains SEC approval, these ETFs might be available for trading by April.
This could create a benchmark for meme coin ETFs and potentially lead to similar products for numerous other tokens.
Utility-driven meme coins may have a greater likelihood of receiving approval. One such contender is Solaxy ($SOLX), which serves as a Layer-2 solution for Solana, featuring a Pepe mascot.
Solaxy aims to enhance transaction efficiency by mitigating network congestion, lowering fees, and accelerating transfer speeds through its side chain. As the first Layer-2 solution for Solana, it occupies a unique position.
This distinct functionality has propelled Solaxy forward, attracting over $15.6 million during its presale. Currently, one $SOLX token is priced at $0.001618, providing an affordable entry point for investors.
Exchange listings often elevate token values, and Solaxy has plans for this as well.
The introduction of a $SOLX ETF could lead to substantial price increases.
For context, consider $BTC. The initial spot $BTC ETF application was made in 2013, yet it wasn’t until 2021 that the first ETF was launched in Canada. Following its introduction, $BTC’s price surged from $33K to $57K within a month, reaching $60K shortly after.
When BlackRock submitted its first US $BTC ETF application in June 2023, $BTC was priced at $27K. Following the launch of U.S. $BTC ETFs in January 2024, the token climbed to $100K.
It seems Solaxy is poised to launch just as institutional interest begins to rise, potentially benefiting its early backers with enhanced returns.
Can Meme Coin ETFs Become Widely Accepted?
The influence of the new pro-crypto SEC leadership is already visible. While the SEC has yet to approve Tuttle Capital’s ETFs, they also haven’t been rejected, indicating a favorable outlook.
The cryptocurrency market might be on the verge of a new bull cycle, allowing institutional investors to evaluate projects like Solaxy based on technological merit instead of merely its meme appeal.
Nonetheless, it’s essential to acknowledge that the crypto landscape is highly volatile, and assured profits are not a guarantee. Always conduct your research and maintain composure.