Ark Invest, led by Cathie Wood, has submitted filings to U.S. regulators for two new cryptocurrency exchange-traded funds based on the CoinDesk 20 index. One fund would mirror the index, which covers major digital assets like bitcoin and ether, while the other would exclude bitcoin through a futures strategy. These products aim to provide diversified crypto exposure without direct ownership of tokens.
Asset manager Ark Invest has taken another step into the cryptocurrency space by filing with the Securities and Exchange Commission for two exchange-traded funds linked to the CoinDesk 20 benchmark. This index tracks the performance of the most liquid digital assets, including bitcoin, ether, solana, XRP, and cardano.
The first proposed ETF would seek to replicate the daily performance of the full CoinDesk 20 using cash-settled futures contracts, avoiding the need for direct custody of cryptocurrencies. The second fund would follow a modified approach, tracking the index while excluding bitcoin. It would achieve this by holding long positions in CoinDesk 20 futures and short positions in bitcoin futures, offering investors exposure to altcoins relative to bitcoin.
If approved, both funds would trade on the NYSE Arca exchange. Ark Invest's move comes amid a broader push by financial firms to expand crypto offerings beyond spot bitcoin ETFs, in which the company already participates. Similar proposals have been filed by WisdomTree and ProShares for crypto index ETFs using regulated futures, though none have received SEC approval yet.
These filings highlight growing interest in diversified crypto investment vehicles that sidestep the regulatory hurdles of direct token holding. By relying on futures, the products could appeal to institutional investors seeking compliant ways to access the market's breadth without operational complexities.
