New ETFs for Chainlink, Cardano, and Polkadot

Tuttle Capital Management has just submitted an application to the U.S. Securities and Exchange Commission (SEC) for approval of the first ETFs for Chainlink ($LINK ), Cardano (ADA), and Polkadot (DOT). These ETFs will be 2x leveraged funds, meaning they aim for profits (or losses) that are 2 times the daily fluctuations of the reference assets through swaps, call options, and direct investments.

In addition to the three coins mentioned, Tuttle also proposed ETFs for other crypto assets like XRP, Solana (SOL), Litecoin ($LTC ), Bonk (BONK), and especially two meme coins tied to American politics: Trump (TRUMP) and Melania (MELANIA).

Could the SEC pave the way for crypto ETFs under Trump?

Tuttle's filing comes amid a personnel change at the SEC, with Acting Chairman Mark Uyeda – who has a crypto-friendly stance – replacing Gary Gensler. This raises hopes that crypto ETF products will have a better chance of being approved under President #TRUMP .

James Seyffart, an analyst at Bloomberg Intelligence, commented:

"ETF issuers are testing how far the SEC will accept. The SEC's new crypto working group may play a key role in this decision."

Eric Balchunas, senior analyst at #Bloomberg , said that if the SEC does not reject soon, these ETFs could start trading as early as April.

Risks from 2x leveraged ETFs

Although these ETFs offer high profit opportunities, they also come with extreme risks. If the underlying asset drops more than 50% in a day, investors could lose all the money invested in the fund. This is why the SEC may carefully consider before approving.

Balchunas also pointed out Tuttle's "boldness" in applying for the Melania 2x ETF, while no regular Melania ETF had been registered previously.

What are the chances for crypto ETFs?

While meme coins like MELANIA and BONK are controversial, larger assets like Solana, XRP, and Litecoin have a higher chance of being approved by the SEC. Previously, Osprey and REX Shares also filed for ETFs for Dogecoin (DOGE), BONK, XRP, and $SOL , opening the possibility for the market to have more crypto ETF products in the near future.

Saravanan Pandian, CEO of KoinBX, commented:

The proposal for ETFs for XRP, Solana, and even new tokens like TRUMP and MELANIA shows the continuous innovation in the crypto industry. However, for success, the SEC needs to ensure there are sufficient risk mitigation measures and ensure transparency.

Conclusion

If the SEC approves these ETFs, it will be an important step for crypto to further access the traditional financial market. However, with the high leverage nature and strong volatility of crypto, the SEC is likely to review thoroughly before making a final decision.

Note: Crypto investment always carries risks. Investors should consider carefully before making decisions. #anhbacong