Tuttle Capital Management has pulled back its request for ten leveraged cryptocurrency ETFs linked to BONK, TRUMP, and MELANIA tokens, raising eyebrows in the financial community. This decision sheds light on the regulatory scrutiny surrounding funds focused on meme coins.
Bitwise Moves Forward with Dogecoin ETF
In a contrasting action, Bitwise has submitted an S-1 registration under the 1933 Securities Act for a Physical Dogecoin ETF, marking it as a legitimate Spot Dogecoin ETF proposal.
Are Meme Coin ETFs Just Speculation?
Critics in the industry argue that meme coin ETFs are merely speculative ventures. Bryan Armour from Morningstar remarked that these ETFs seem more appropriate for entertainment than for serious trading platforms.
The cryptocurrency market has seen significant outflows, with established Bitcoin and Ethereum ETFs losing a combined $600 million recently. Despite this, U.S. spot Bitcoin ETFs still control 5.55% of the total Bitcoin supply.
- Tuttle’s withdrawal highlights the SEC’s limits on acceptable fund proposals.
- Industry experts express concerns about meme coins’ viability as financial instruments.
- Major ETFs like Fidelity’s FBTC and Grayscale’s GTBC have faced notable outflows.
The recent developments indicate a climate of caution among investors regarding cryptocurrency ETFs, particularly those tied to meme coins. The ongoing regulatory challenges contribute to this growing uncertainty in the market.
