TLDR
- ARK filed three Bitcoin ETFs with yield and downside protection features.
- SEC now approves crypto ETFs faster, cutting review time to 75 days.
- Spot Bitcoin ETFs saw $103 million inflows on October 14, data shows.
- ARK’s existing Bitcoin ETF holds over $5 billion in total net assets.
ARK Invest, led by Cathie Wood, has taken another step into the expanding crypto market. The firm filed for three new Bitcoin exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC) on October 14. This move comes as investor interest in Bitcoin ETFs rises again, with renewed inflows across major funds amid a shifting regulatory environment.
ARK Expands Its Bitcoin ETF Lineup
The new filings include the ARK Bitcoin Yield ETF and two defined outcome funds—the ARK DIET Bitcoin 1 ETF and ARK DIET Bitcoin 2 ETF. All three will operate under the ARK ETF Trust. These funds are designed to provide different levels of Bitcoin exposure, income generation, and downside protection for investors.
The ARK Bitcoin Yield ETF seeks to generate income through Bitcoin-linked strategies such as options selling and premium collection. It will also allow up to 25% of its assets to be invested in ARK Invest’s equity, combining yield generation with exposure to the firm’s performance.
The DIET funds, or Defined Outcome Equity Toggle ETFs, are structured to manage risk over quarterly periods. The DIET 1 ETF offers 50% downside protection and begins participating in Bitcoin’s upside only after a 5% gain. The DIET 2 ETF protects investors from the first 10% of losses while engaging in upside performance once Bitcoin exceeds its starting value for the period.
New SEC Rules Simplify ETF Approvals
ARK’s filings come soon after the SEC introduced new generic standards for exchange-traded products tied to commodities and crypto assets. Approved in September, these standards reduce the review time for new ETF listings from about 240 days to roughly 75 days.
Under the updated framework, ETFs that meet specific criteria, such as trading on exchanges within the Intermarket Surveillance Group or having six months of regulated futures activity, can proceed without separate rule filings. This regulatory update has encouraged more issuers to file for crypto-linked ETFs, accelerating market growth. Analysts expect many new products to appear over the coming months as the process becomes faster and more transparent.
Institutional Demand for Crypto Exposure Grows
ARK Invest already manages the ARK 21Shares Bitcoin ETF (ARKB), which holds over $5 billion in assets. The firm’s existing spot Bitcoin ETF has attracted about $2.33 billion in inflows since launching in January 2024. The new filings extend ARK’s strategy to meet growing institutional demand for diversified crypto exposure.
Cathie Wood has consistently described Bitcoin as a long-term asset and a form of “digital gold.” The new products reflect that vision while addressing the needs of investors seeking income and risk control. The firm’s approach aligns with broader market trends as traditional financial institutions expand their presence in digital asset markets.
Renewed ETF Inflows Signal Investor Confidence
Market data shows that spot Bitcoin ETFs recorded $103 million in net inflows on October 14. Fidelity’s FBTC led with $133 million, followed by ARK’s ARKB, which added $6.8 million. Since early 2024, U.S. spot Bitcoin ETFs have drawn more than $62.5 billion in total net inflows.
Bitcoin was recently trading around $113,000, recovering from brief outflows earlier in the week. The rise in ETF activity indicates sustained confidence among investors despite market volatility. With the SEC’s new approval framework in place, ARK Invest and other asset managers are preparing to launch a wider range of crypto investment products in the months ahead.
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