New Crypto ETFs Filed: Avalanche, Memecoins, and Leveraged Funds

Bitwise, Defiance ETFs, Tuttle Capital Management, and T-Rex have collectively filed five distinct cryptocurrency ETF applications, showcasing the broadening scope of institutional interest in digital assets. Bitwise’s filings include a spot Avalanche (AVAX) ETF and a Stablecoin & Tokenization ETF, positioning the firm alongside VanEck and Grayscale in pursuing institutional-grade exposure to AVAX. Defiance ETFs introduced market-neutral Bitcoin and Ethereum funds that employ basis trade arbitrage strategies—buying spot ETFs while shorting futures contracts—a novel approach in the ETF landscape. Tuttle Capital Management, managing over $3.6 billion in assets, filed for a Bonk (BONK) ETF, becoming the second U.S. fund manager to seek meme coin exposure, alongside ‘Income Blast’ products covering Litecoin (LTC) and Sui (SUI). T-Rex rounded out the filings with a leveraged 2x Orbs ETF, adding to the diversity of strategies now under SEC review.

This filing blitz contributes to an already swollen roster of over 90 crypto ETF applications pending before the SEC, highlighting the relentless demand for regulated crypto investment vehicles. The timing is notable, as REX-Osprey’s Dogecoin ETF prepares to debut this week after clearing its SEC review period, signaling that the regulatory gates may be opening—albeit cautiously—for a wider range of digital assets. As Nate Geraci of ETF Institute noted, the expansion into ‘wild’ territory like memecoins and leveraged products reflects issuers’ anticipation of a generational wealth transfer, with younger investors increasingly viewing ‘memetics’ as a legitimate part of their investment strategy.

Industry analysts are unanimous in their view that approval prospects vary significantly across these new filings. Pratik Kala, head of research at Apollo Crypto, told Decrypt that ‘the spot AVAX ETF should have the highest chance of approval because it’s a simple product relative to others.’ This sentiment was echoed by Sudhakar Lakshmanaraja, founder of Digital South Trust, who emphasized that the SEC is ‘far likelier to greenlight AVAX and stablecoin/tokenization ETFs’ due to their alignment with existing regulatory frameworks and perceived stability. Pav Hundal, lead analyst at Swyftx, added that ‘infrastructure coins like Avax are close enough to Ether’ to have strong approval odds, and ‘the same holds true for Sui,’ noting that the SEC provided ‘clarity’ in February that ‘meme coins aren’t securities,’ which could bode well for some filings.

However, skepticism abounds for more exotic products. Kala expressed doubts about the basis trade ETF, stating it ‘will be the first of its kind, to my knowledge, and will have more scrutiny.’ Lakshmanaraja pointed out that ‘meme coin-linked products face a steeper climb’ due to concerns over ‘volatility and liquidity.’ Kala further elaborated that ‘Income Blast ones on long-tailed altcoins are also difficult as the options volumes for those are slim,’ and it would be ‘fair for the SEC to draw a harder line for memecoin-based ETFs due to the long-term sustainability of some of these coins, along with a poorer liquidity profile.’ Despite these challenges, Hundal showed enthusiasm for the basis trade ETF, calling it a ‘standout’ and predicting that ‘these types of yield-bearing funds could be big’ given the unmet demand for market-neutral crypto products.

The filing of these ETFs—ranging from straightforward spot funds to complex arbitrage strategies—signals a maturation of the crypto market and a growing sophistication among institutional investors. Bitwise’s entry into AVAX ETFs alongside VanEck and Grayscale suggests that Avalanche is gaining traction as a foundational blockchain infrastructure, comparable to Ethereum in the eyes of regulators. The pursuit of tokenization and stablecoin ETFs further indicates a shift toward real-world asset (RWA) tokenization, a trend that has been gaining momentum across traditional finance.

Yet, the inclusion of memecoins like Bonk and leveraged products like Orbs underscores the high-risk, high-reward appetite that still characterizes segments of the crypto market. As Kala aptly noted, it’s ‘wild that ETF applications on long-tailed crypto and memecoin assets are being considered,’ but this reflects a strategic positioning by issuers to capture the next wave of investor demand. The SEC’s response to these filings will set important precedents for what types of crypto exposure can be offered to mainstream investors, balancing innovation with investor protection.

With over 90 applications now in the queue, the SEC faces mounting pressure to provide clearer guidelines and faster decisions. The approval of a Dogecoin ETF this week could pave the way for more meme coin products, while the rejection of overly complex strategies might narrow the field to simpler, more transparent offerings. Regardless of the outcomes, this influx of filings demonstrates that the crypto ETF landscape is evolving rapidly, driven by both investor demand and regulatory developments, and will likely continue to shape the future of digital asset investment for years to come.