Before the Bitcoin spot ETF is approved, Tuttle Capital Management, the issuer, has submitted applications for six new types of Bitcoin ETFs to the SEC on the 3rd. These ETFs are based on the Bitcoin spot ETF and will provide leveraged and short investment options in the future.
(Bitcoin spot ETF application under review, Tuttle Capital Management submits applications for six new Bitcoin ETFs to the SEC)
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The review of the Bitcoin spot ETF application is at a critical moment in these two weeks. Any news or rumors have put the market on edge. Although the outcome is still uncertain, Tuttle Capital Management has preemptively submitted applications for six new types of Bitcoin ETFs to the SEC on the 3rd. These ETFs are characterized by providing leveraged and short investment options, with a particular focus on the potential for amplified returns through the Bitcoin spot ETF.
Amplifying the spot ETF to a maximum of 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 they list 1.5x, 1.75x, and 2x long and short ETFs targeting the Bitcoin spot ETF. It is understood that Tuttle Capital initially plans to use BlackRock’s future iShares Bitcoin spot ETF as the basic reference for exchange trading. However, they also stated that they may adjust the reference assets based on market conditions in the future. The application document specifically mentioned:
Tuttle has not yet disclosed the specific ticker symbols or fee structures for these ETFs, and the ETFs have not yet received approval from the SEC. In response to this, Bloomberg analyst Eric Balchunas retweeted and said, “It’s just a matter of time…”
Leveraged futures ETF approved last year
In fact, ETF issuer Volatility Shares launched a “2x leveraged” 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 of the value of Bitcoin into one Bitcoin.
Further reading:
BTC breaks through 31,000: The first “Bitcoin 2x leveraged futures” may go live: SEC approval instead of rejection.
It is worth noting that Tuttle Capital’s ETF plan is still based on the Bitcoin spot, while Volatility Shares’ ETF is based on Bitcoin futures. Spot ETF directly tracks the actual market price of Bitcoin, while futures ETF tracks futures contracts. The difference is that futures contracts may introduce rolling risks and other complexities related to the futures market.
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