In a recent update, Bloomberg’s senior ETF analyst, Eric Balchunas, indicated that the possibility of a 2x leveraged Bonk ETF is still viable. He noted that while Tuttle Capital Management withdrew filings for 2x leveraged ETFs linked to Melania and Trump tokens—likely due to regulatory concerns—the filing for a Trump and Dogecoin ETF by Rex Shares remains active. This suggests that the U.S. Securities and Exchange Commission (SEC) may not be dismissing all meme coin ETFs outright, leaving room for a potential Bonk ETF to proceed.
Balchunas highlighted that the recent filing by Tuttle Capital Management includes ten 2x leveraged crypto ETFs, among them one for Bonk. If approved, this would mark the first leveraged ETF to track Bonk, offering investors amplified exposure to the meme-inspired cryptocurrency.
The application for the Bonk ETF was submitted under the Investment Company Act of 1940. According to Balchunas, unless the SEC disapproves, these ETF products could potentially be launched and trading by April. He emphasized the importance of observing where the SEC sets boundaries, if at all, and the reasons behind such decisions.
As of January 29, 2025, Bonk (BONK) is trading at approximately $0.00002449, reflecting a slight decrease of 0.02236% from the previous close.
The evolving landscape of cryptocurrency ETFs, especially those linked to meme coins like Bonk, underscores the dynamic interplay between market innovation and regulatory oversight. Investors are advised to stay informed about regulatory developments and assess the inherent risks associated with leveraged crypto investments.
