Tuttle Capital Files SEC Registration for Leveraged CDS ETFs Targeting AI-Related Corporate Debt Risks

Tuttle Capital Management has submitted filings with the U.S. Securities and Exchange Commission for five new exchange-traded funds designed to provide exposure to credit default swaps (CDS) on companies heavily involved in AI infrastructure spending. The proposed ETFs target Oracle (ORCL), CoreWeave (CRWV), the Magnificent Seven tech companies, semiconductor firms, and hyperscalers, using CDS contracts to profit from widening credit spreads indicative of rising default risk perceptions.

According to details shared in the filings, the funds would primarily buy CDS protection, gaining value when market-implied creditworthiness deteriorates, with target notional exposure of 5-10x net assets for leveraged returns. They are slated for potential effectiveness around mid-January 2027. This development follows documented increases in CDS spreads for AI-related borrowers, including record levels for CoreWeave debt and elevated spreads for Oracle bonds amid concerns over massive data center and chip investments.

Tuttle, an active issuer of thematic and leveraged ETFs with billions in AUM, has a track record of launching niche products. The move aligns with broader Wall Street scrutiny of whether AI capex will yield sufficient returns to service the associated debt.