Cathie Wood's Ark Invest has submitted several new Bitcoin ETF applications to the U.S. Securities and Exchange Commission (SEC), dated October 14, 2025. The filings include the ARK Bitcoin Yield ETF, which aims to generate revenue by selling options and collecting premiums to minimize volatility, and is permitted to invest up to 25% of its assets in other Ark funds. Additionally, the ARK DIET Bitcoin 1 ETF and ARK DIET Bitcoin 2 ETF are designed to protect investors from downside risk. The DIET 1 ETF cushions against half of market losses but only participates in gains after Bitcoin rises by 5%, while the DIET 2 ETF covers the first 10% of losses and engages in upside potential after prices rebound beyond a set threshold.
This move follows BlackRock's recent request to list its iShares Bitcoin Premium Income ETF on Nasdaq, highlighting intensified competition among issuers for diversified crypto ETFs. The broader U.S. ETF industry reached a record $12.7 trillion in assets at the end of September, with net inflows of $152.5 billion in September alone and year-to-date inflows totaling $951.27 billion, according to ETFGI. ETFs have seen 41 consecutive months of inflows, indicating strong investor confidence. Grayscale's Bitcoin and Ethereum Mini Trust ETFs hold $5.46 billion and $3.00 billion, respectively, and ETFGI forecasts net flows may peak by end-2025 due to spot crypto and tokenization-themed ETFs.
Bitcoin's price reacted positively, rising 1% to $113,051 in the last 24 hours, with a 30% increase in volume. Federal Reserve Chair Jerome Powell's indication of potential rate cuts contributed to volatility. However, total Bitcoin futures open interest declined 2% to $72.74 billion, suggesting some profit-taking. Ark's existing 21Shares Bitcoin ETF (ARKB) recorded nearly $7 million in inflows this week, part of over $100 million in net inflows for U.S. spot Bitcoin funds, reinforcing the trend toward institutional adoption.
