Tuttle Capital Management, an ETF issuer, has proposed six new ETFs designed to offer leveraged and inverse investment options based on the performance of a hypothetical spot Bitcoin ETF. These filings, submitted to the U.S. Securities and Exchange Commission on January 3, aim to provide investors with amplified returns from the potential performance of a spot Bitcoin ETF, which is still awaiting SEC approval.
Proposed Leveraged and Inverse Bitcoin ETFs
Tuttle’s submission includes three sets of ETFs: T-REX 1.5X, 1.75X, and 2X Long Spot Bitcoin Daily Target ETFs, along with T-REX 1.5X, 1.75X, and 2X Inverse Spot Bitcoin Daily Target ETFs. These funds are designed to seek daily investment results that are 150% (1.5X) and 200% (2X) of the performance of their reference spot Bitcoin ETF.
Initially, Tuttle plans to reference BlackRock’s proposed iShares spot Bitcoin ETF for these funds’ swap agreements. However, they have indicated the possibility of changing this reference asset in the future.
Risks and Magnified Performance
The filings emphasize the increased risk associated with these ETFs due to their use of leverage, which magnifies both gains and losses compared to non-leveraged alternatives.
As of now, Tuttle has not revealed specific ticker symbols or management fees for these proposed ETFs. Further information and comments from Tuttle are pending.
Current Tuttle Capital Portfolio
Tuttle Capital currently manages seven listed ETFs, with a total asset value of approximately $96 million. This portfolio includes the T-REX 2X Long Tesla Daily Target ETF (TSLT) and the T-REX 2X Long NVIDIA Daily Target ETF (NVDX).
These proposed ETFs represent an innovative approach to offering investors leveraged exposure to Bitcoin’s market performance, albeit indirectly and with amplified risk, pending the approval of a spot Bitcoin ETF by the SEC.