TLDR
- ProShares CoinDesk 20 ETF tracks Bitcoin, Ethereum, XRP, and Solana.
- The ETF uses swaps and derivatives instead of holding crypto directly.
- The fund mirrors the CoinDesk 20 Index, excluding stablecoins and memecoins.
- SEC filing shows growing institutional demand for diversified crypto ETFs.
ProShares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) that tracks major cryptocurrencies, including Bitcoin, Ethereum, XRP, and Solana. The proposed fund, known as the ProShares CoinDesk Crypto 20 ETF, aims to mirror the performance of the CoinDesk 20 Index through regulated financial instruments such as swaps and derivatives.
ProShares Seeks SEC Approval for CoinDesk 20 ETF
ProShares submitted an application to the SEC for approval of the CoinDesk 20 ETF. The fund is designed to reflect the market performance of the top 20 cryptocurrencies ranked by market capitalization. It will provide exposure to leading digital assets, including Bitcoin, Ethereum, XRP, and Solana, which collectively represent a large share of the global crypto market.
According to the filing, the ETF will not hold cryptocurrencies directly. Instead, it will gain exposure through swaps, derivatives, and similar instruments. This structure is intended to maintain regulatory compliance while giving investors access to the performance of multiple crypto assets within a single investment vehicle.
Structure and Composition of the CoinDesk 20 Index
The CoinDesk 20 Index measures the performance of the most liquid and widely traded digital assets. It excludes stablecoins, memecoins, and wrapped tokens to ensure accuracy and transparency in tracking market performance. Bitcoin and Ethereum have the largest weighting in the index, followed by XRP and Solana, which are among the most traded cryptocurrencies.
The fund’s prospectus indicates that a subsidiary based in the Cayman Islands will manage derivative contracts for the ETF. However, this subsidiary will be limited to holding no more than 25% of the fund’s total assets. This setup allows ProShares to use derivatives efficiently while remaining within U.S. investment guidelines.
Rising Institutional Demand for Regulated Crypto Investment
ProShares’ latest filing reflects the growing institutional demand for regulated crypto investment products. The firm launched its first Bitcoin futures ETF in 2021, which quickly became one of the most traded crypto-related funds in the United States. The new CoinDesk 20 ETF seeks to expand that offering by providing broader exposure to the digital asset market.
Bloomberg ETF analyst Eric Balchunas stated that “there are now more than 155 crypto exchange-traded product filings covering 35 different digital assets.” He added that the number could rise above 200 within the next year, showing continued interest from asset managers seeking SEC approval for crypto-linked funds.
Expanding Market Competition Among Crypto ETF Issuers
The ProShares filing comes as competition grows among ETF providers. VanEck recently amended its Solana ETF proposal, reducing fees to attract investors. Similarly, 21Shares modified its application for a spot Dogecoin ETF, while REX–Osprey filed for multiple funds tied to assets such as Cardano and Stellar.
The CoinDesk 20 Index rebalances every quarter to reflect changes in liquidity and market capitalization. It currently includes assets like Bitcoin, Ethereum, XRP, Solana, Cardano, and Avalanche. If approved, the ProShares CoinDesk Crypto 20 ETF would become one of the first diversified crypto ETFs in the United States, allowing traditional investors to access multiple digital assets within one regulated fund.
The filing signals continued progress in integrating cryptocurrencies into mainstream financial products, as asset managers seek to provide safer and more diversified exposure to the evolving crypto market.
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