Asset manager KraneShares has advanced its proposal for a diversified cryptocurrency exchange-traded fund (ETF) by submitting a third amended filing to the U.S. Securities and Exchange Commission (SEC). The filing, designated as Pre-Effective Amendment No. 3 to the S-1 registration statement, is for the proposed KraneShares Coinbase 50 Index ETF, which would trade under the ticker KCOI.
The fund is designed to track the performance of the Coinbase 50 Index, a benchmark comprising the 50 largest digital assets by market capitalization. A notable detail in the filing is the confirmed inclusion of XRP within the index basket. The proposed management fee for the ETF is set at 0.68%.
According to analysis from Bloomberg Intelligence ETF analyst James Seyffart, the initial portfolio would hold significant allocations to Bitcoin (BTC) and Ethereum (ETH), alongside other major assets including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Bitcoin Cash (BCH), Stellar (XLM), Avalanche (AVAX), Litecoin (LTC), Shiba Inu (SHIB), and Polkadot (DOT).
The filing represents a critical step in the SEC's review process, which typically involves multiple rounds of comments on issues such as custody, market manipulation, and investor protection. This process mirrors the rigorous path taken by spot Bitcoin ETFs before their approvals in early 2024. The amended filing does not signify final approval but indicates an active dialogue with regulators and moves the proposed product closer to a potential launch.
The development coincides with KraneShares promoting its broader technology-focused investment suite. The firm held a Technology Investor Day at the Nasdaq MarketSite on April 21, 2026, featuring a bell-ringing ceremony for its KraneShares InspereX Nasdaq Dynamic Buffered High Income Index ETF (KIQQ).
Separately, the news unfolds against a backdrop of legal challenges for Coinbase, the index provider and custodian. The New York Attorney General, Letitia James, has sued Coinbase over its prediction markets business, alleging it constitutes illegal gambling under state law and seeking at least $2.2 billion in damages. Coinbase has rejected the claims, with Chief Legal Officer Paul Grewal stating the markets are federally regulated exchanges.
