Why Did Tuttle Capital Withdraw ETF Applications?

Why Did Tuttle Capital Withdraw ETF Applications?

Tuttle Capital Management has withdrawn its applications for ten leveraged cryptocurrency exchange-traded funds (ETFs) linked to BONK, TRUMP, and MELANIA tokens, raising concerns within the financial community. This move underscores the regulatory challenges faced by funds centered around meme coins.

Bitwise Moves Forward with Dogecoin ETF

In a contrasting move, Bitwise has filed a registration statement with the Securities and Exchange Commission (SEC) for a Physical Dogecoin ETF, positioning it as a legitimate Spot Dogecoin ETF proposal.

Concerns over Meme Coin ETFs

Industry critics argue that meme coin ETFs are essentially speculative ventures. Bryan Armour of Morningstar believes these ETFs are more suited for entertainment than for serious trading.

Market Outflows and Concerns

The cryptocurrency market has witnessed substantial outflows, with significant losses in prominent Bitcoin and Ethereum ETFs. Despite this, Spot Bitcoin ETFs in the United States still account for 5.55% of the total Bitcoin supply.

Implications for Cryptocurrency ETFs

Tuttle's withdrawal illustrates the SEC's limitations on acceptable fund proposals. Industry experts express concerns about the viability of meme coins as financial instruments. Major ETFs, such as Fidelity's FBTC and Grayscale's GTBC, have also experienced notable outflows.

These developments signal a cautious climate among investors regarding cryptocurrency ETFs, especially those tied to meme coins. Ongoing regulatory hurdles contribute to the growing uncertainty in the market.

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