Before the approval of Bitcoin spot ETFs, Tuttle Capital Management has submitted applications for six new types of Bitcoin ETFs to the SEC. These ETFs are based on Bitcoin spot ETFs and will offer leveraged and short investment options in the future.
Background:
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The review of Bitcoin spot ETF applications has reached a critical moment in the past two weeks, and any news regarding this has made the market nervous. Although the results are still uncertain, ETF issuer Tuttle Capital Management took the lead on the 3rd by submitting applications to the SEC for six new types of Bitcoin ETFs. These ETFs will provide leveraged and short investment options, with a focus on the potential for expanding returns through Bitcoin spot ETFs.
Spot ETFs can be amplified up to 200%
On January 3rd, Tuttle Capital submitted three N1-A forms to the SEC. These forms are commonly used documents for establishing new ETFs and list 1.5x, 1.75x, and 2x long and short ETFs targeting Bitcoin spot ETFs. It is understood that Tuttle Capital initially plans to use BlackRock’s future iShares Bitcoin spot ETF as the reference for exchange trading. However, they also stated that they may adjust the reference assets based on market conditions in the future. The application documents specifically mentioned that Tuttle has not yet disclosed the specific ticker symbols or management fee structures for these ETFs, and the ETFs have not received approval from the SEC. In response, Bloomberg analyst Eric Balchunas retweeted, “It’s only a matter of time…”
Leveraged futures ETFs approved last year
In fact, ETF issuer Volatility Shares launched a “2x leverage” Bitcoin futures ETF trading in June last year, becoming the first leveraged Bitcoin futures ETF in the United States. This product tracks the daily rolling index of Bitcoin futures on the CME (Chicago Mercantile Exchange). “2x leverage” means that users can amplify half the value of their Bitcoin investment into one Bitcoin.
Further reading:
BTC breaks through 31,000: The first “Bitcoin 2x leverage futures” may go live: SEC approval without rejection.
It is worth noting that Tuttle Capital’s ETF plan is still based on Bitcoin spot, while Volatility Shares’ ETF is based on Bitcoin futures. Spot ETFs directly track the actual market price of Bitcoin, while futures ETFs track futures contracts. The difference is that futures contracts may introduce rolling risks and other complexities related to the futures market.
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