Cathie Wood’s Bold Crypto ETF Move!

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ARK Files for Two New Crypto Index ETFs

Rather than launching a fund focused on a single digital asset, Cathie Wood’s firm is planning to offer wider exposure to the digital asset market with two new exchange-traded funds. Both funds will track the CoinDesk 20 index, but cater to different investor needs: one will include Bitcoin, while the other will exclude it.

Key Takeaways

  • ARK Invest is proposing two crypto ETFs tied to the CoinDesk 20 index, separating Bitcoin from altcoin exposure
  • The funds would use regulated futures contracts rather than holding cryptocurrencies directly
  • The filings highlight growing experimentation with multi-asset crypto ETFs beyond spot Bitcoin products

A Split View of the Crypto Market

ARK Invest’s launch of two crypto ETFs suggests they believe the cryptocurrency market is dividing into separate investment themes. One ETF centers around Bitcoin and other major altcoins like Ether, Solana, XRP, and Cardano. The other ETF completely excludes Bitcoin, instead concentrating on a variety of alternative blockchains and technologies.

ARK Invest’s decision to treat Bitcoin separately recognizes that investors are increasingly seeing it as a unique asset – similar to digital gold – while also seeking opportunities in more dynamic areas like smart contract technologies and their related platforms.

Why These ETFs Won’t Hold Crypto

Instead of directly purchasing cryptocurrencies, ARK’s new funds would aim to match the performance of the CoinDesk 20 Index by using futures contracts. Any remaining funds would be held as cash or very safe, liquid investments.

This approach positions the ETFs within established, regulated markets for derivatives, and trading of the underlying index futures is anticipated on ICE Futures. By avoiding direct ownership of cryptocurrencies, the structure simplifies operations and reduces the regulatory hurdles often associated with holding digital assets directly.

Instead of directly owning Bitcoin or other cryptocurrencies, investors would benefit from price changes through investments in futures contracts linked to a variety of crypto assets.

A Different Path Than Rival Funds

ARK’s approach to crypto investing differs from other similar products currently seeking approval. While some competitors plan to directly buy and hold cryptocurrencies mirroring a specific market index, ARK is taking a different path using futures contracts.

As a crypto investor, I’ve been watching the ETF race closely. Companies like WisdomTree are trying to launch ETFs that *actually hold* Bitcoin and other cryptocurrencies directly – what they call ‘spot’ ETFs. But it’s interesting because not everyone is doing that. Some companies seem more focused on avoiding regulatory trouble than giving investors direct access to crypto, and they’re choosing different approaches. It’s creating a real split in how these ETFs are being built.

ARK appears to be taking a more cautious approach, probably due to the current unclear rules surrounding funds that directly hold various cryptocurrencies in the United States.

What This Says About the ETF Market

ARK intends to list its funds on the NYSE Arca exchange, further establishing the exchange as a key platform for launching crypto-focused investment products. Even more significantly, these plans demonstrate just how rapidly the ETF market is changing following the recent approval of Bitcoin ETFs.

The debate has shifted from *if* crypto should be included in exchange-traded funds (ETFs) to *how* it should be done. Asset managers are exploring different options – like funds based on market indexes, collections of cryptocurrencies excluding Bitcoin, and strategies using futures contracts – to satisfy investor interest while staying within legal boundaries.

If approved, ARK’s proposed ETFs would give investors more options – allowing them to choose not only between crypto and traditional investments, but also between different approaches to investing in crypto through an ETF.

As an analyst, I want to be clear that the information I provide is strictly for educational purposes. It’s not financial, investment, or trading advice, and I don’t recommend any particular investment or cryptocurrency. Before you make any investment decisions, please do your own thorough research and, importantly, consult with a qualified financial advisor.

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2026-01-24 10:49