The provider of the fund quoted by Exchange (ETF) Tuttle Capital Management is “testing the waters” of the Trump administration friendly with cryptography with ten proposals of ETF leverage 2x to the United States stock and values commission (SEC) on Monday , including those that track Donald and Melania Trump’s’s officials.
Tuttle proposed the first ETFs that tracks 200% of the returns of the following tokens: Chainlink (Link), cardan Sol), Litecoin (LTC) and Trump (Trump).
Daily performance returns of these tokens will be traced and generate through SWAPS, purchase options and direct investments, according to the presentation. However, investors have the possibility of losing their entire capital if prices fall significantly due to the leveraged nature of these products.
“The use of leverage amplifies the yields but also magnifies the losses, with investors potentially losing their entire capital within a single negotiation day if the value of the underlying asset falls by more than 50%,” the presentation warned.
Although 50% falls are rare, Altcoin’s markets are infamous for suddenly falling by 10% in market stress times, as they did on Monday. A 10% drop would mean that ETFs fall at least 20%, before rates.
Bloomberg’s intelligence analyst James Seyffart said in an X post that the presentations were probably a proof of what the Trump administration can allow.
“This is a case of emitters who test the limits of what this will allow,” Seyffart said. “I hope that the new Crypto task force (directed by @hesterpeirce) is probably Linchpin to determine what will be allowed to what is not.”
“A 2x Melanie ETF (sic) before a 1x melania ETF has been presented. That is unusual, ”said Bloomberg Intelligence analyst Eric Balchunas.
Balchunas added that ETFs could be technically available in April unless the SEC explicitly disapproved, since it was a presentation of “Law 40”, which allows a potential trade if not disapproved within the revision period due to its process structured for review and approval of investment products.
