ProShares Files for Crypto ETF Tracking CoinDesk 20 Index Amid Rising Institutional Demand

ProShares, a leading U.S. asset manager, has filed with the Securities and Exchange Commission (SEC) to launch the ProShares CoinDesk Crypto 20 ETF, a new exchange-traded fund designed to track the performance of the CoinDesk 20 Index. This benchmark measures the top 20 cryptocurrencies by market capitalization, including Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL), while excluding stablecoins, memecoins, and wrapped tokens.

According to the filing, the ETF aims to mirror the index’s performance before fees and expenses. Instead of directly holding cryptocurrencies, the fund will gain exposure through swaps, derivatives, and similar financial instruments referencing the index’s assets. To facilitate these transactions, ProShares plans to establish a Cayman Islands subsidiary, though no more than 25% of the fund’s assets will be allocated there. This approach ensures compliance with U.S. regulations while providing investors with diversified access to the crypto market.

The CoinDesk 20 Index rebalances quarterly, featuring major crypto assets with strong liquidity and large market caps, such as Bitcoin, Ethereum, XRP, Solana, Cardano, and Avalanche. With VanEck recently cutting fees for its Solana ETF and 21Shares updating its filing for a Dogecoin ETF, the race among fund issuers to capture institutional interest in digital assets is heating up.

ProShares, best known for launching the first U.S. Bitcoin futures ETF in 2021, continues expanding its crypto-related offerings amid growing institutional demand. The proposed ETF represents a significant step toward regulated, diversified crypto exposure in traditional markets. If approved, the ProShares CoinDesk Crypto 20 ETF could accelerate institutional adoption, offering investors a safer and more convenient way to tap into the performance of leading cryptocurrencies.