BONK

In brief

• Bitwise, Defiance, Tuttle, and T-Rex filed five new crypto ETFs, from Avalanche and Sui to memecoin Bonk and leveraged Orbs.
• Analysts say AVAX and tokenization funds have the strongest approval odds, while memecoin and basis-trade ETFs face “more scrutiny.”
• The filings add to a queue of over 90 crypto ETF applications infront of the SEC.

A flood of crypto ETF applications hit the Securities and Exchange Commission on Tuesday, with five distinct filings spanning everything from Avalanche infrastructure to Bonk (BONK) in what one analyst called “wild” territory.

The lineup includes Bitwise’s spot Avalanche ETF and a Stablecoin & Tokenization ETF, Defiance ETFs built around Bitcoin and Ethereum basis trades, Tuttle’s “Income Blast” funds covering Bonk (BONK), Litecoin (LTC), and Sui (SUI), and T-Rex’s leveraged 2x Orbs ETF, according to ETF Institute co-founder Nate Geraci.

Together, they expand an already swelling roster of more than 90 crypto ETF applications pending before the regulator.



“The spot AVAX ETF should have the highest chance of approval because it’s a simple product relative to others,” Pratik Kala, head of research at Apollo Crypto, told Decrypt. 

Bitwise joins VanEck and Grayscale in pursuing institutional-grade exposure to AVAX ETFs.

But Kala expressed skepticism about more exotic products, saying that “Basis Trade ETF will be the first of its kind, to my knowledge, and will have more scrutiny.” 

He was referring to Defiance ETFs’ market-neutral Bitcoin and Ethereum funds that execute hedge fund arbitrage strategies by buying spot ETFs while shorting futures contracts.

Sudhakar Lakshmanaraja, founder of Digital South Trust, echoed Kala’s assessment, telling Decrypt that the SEC is “far likelier to greenlight AVAX and stablecoin/tokenization ETFs,” while “meme coin-linked products face a steeper climb” due to concerns over “volatility and liquidity.”

Tuttle Capital Management, managing over $3.6 billion in assets, became the second U.S. fund manager to file for a spot Bonk (BONK) ETF, alongside “Income Blast” products covering Litecoin and Sui. 

“Income Blast ones on long-tailed altcoins are also difficult as the options volumes for those are slim,” Kala told Decrypt. “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.”

Pav Hundal, lead analyst at Swyftx, told Decrypt that “infrastructure coins like Avax are close enough to Ether” to have strong approval odds, and “the same holds true for Sui.” 

He noted the SEC provided “clarity” in February that “meme coins aren’t securities,” suggesting more applications will follow. 

But Hundal showed particular enthusiasm for the basis trade ETF, calling it a “standout” since “a market neutral product hasn’t been launched yet” and predicting “these types of yield-bearing funds could be big.”

The filing blitz comes as REX-Osprey’s Dogecoin ETF prepares to debut this week after clearing its SEC review period. 

Kala said it’s “wild that ETF applications on long-tailed crypto and memecoin assets are being considered” as issuers position for “the largest wealth transfer” from boomers to younger generations who see “memetics plays a large role in investing.”

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