Asset management firm ProShares has submitted a filing with the U.S. Securities and Exchange Commission (SEC) seeking approval to launch the ProShares CoinDesk Crypto 20 ETF, which would track the performance of the CoinDesk 20 Index. This index represents the top 20 cryptocurrencies by market capitalization and liquidity, excluding stablecoins and memecoins, and includes major assets like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Cardano (ADA), and Avalanche (AVAX).
The ETF is designed to be listed on the NYSE and will use swaps and derivatives to simulate exposure to the index, rather than holding cryptocurrencies directly. This approach aligns with ProShares' strategy from its 2021 launch of the first U.S. Bitcoin Futures ETF. A Cayman Islands subsidiary will manage up to 25% of the fund's assets in derivative contracts, and the fund aims to mirror the index's movements before accounting for fees and expenses.
This move comes amid intense competition in the crypto ETF space, with rivals like VanEck revising its Solana ETF to lower fees to 0.3% and 21Shares seeking approval for a spot Dogecoin ETF. The CoinDesk 20 Index undergoes quarterly rebalancing based on liquidity and market cap, capturing broader market trends and serving as an on-ramp for traditional investors seeking diversified crypto exposure without technical hurdles.
ProShares' filing highlights a shift in institutional demand toward diversified crypto baskets, which can reduce volatility from individual tokens while tapping into market growth. If approved, this ETF could become a foundational product for wealth managers integrating digital assets into portfolios, with other firms like REX Shares and Osprey Funds also exploring similar multi-asset ETFs.
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