Leading asset management company ProShares has announced its intention to introduce a new crypto ETF that tracks the CoinDesk 20 Index.
To accomplish this, the company will file an application with the Securities and Exchange Commission (SEC) and then seek the commission's approval.
Meanwhile, reliable sources point out that the index is extremely important in the crypto ecosystem as it measures the performance of the top 20 cryptocurrencies based on market capitalization.
Cryptocurrency Fund Providers Accept Cryptocurrency ETF Approval in This Area
ProShares shared the name of the new fund, indicating that it will be known as the ProShares CoinDesk Crypto 20 ETF. According to the company, this will allow investors to invest in major cryptocurrencies such as Solana, Ethereum, XRP, and Bitcoin.
on the other hand, SEC filing We emphasized that this ETF is designed to mirror the performance of the CoinDesk 20 Index. Please note that this does not include fees or other costs.
Reliable sources also conducted research and found that the index does not consist of wrapped tokens, meme coins, or stablecoins, but instead focuses on highly liquid cryptocurrencies with large market caps.
Supporting this claim, the market benchmark prominently includes BTC, ETH, and XRP, with SOL also being one of the largest assets in the index.
Meanwhile, it is worth noting that ProShares' move signals a growing trend among crypto fund providers seeking approval for crypto ETFs. As an example, VanEck recently updated its Solana ETF application and lowered fees to 0.3%.
Regarding ProShares' cryptocurrency ETF, the company said that the ETF is Own any cryptocurrency directly. Instead, it aims to gain exposure in the cryptocurrency ecosystem using swaps, derivatives, and similar financial tools linked to assets within the index.
Officials confirmed that this approach is highly favored by the market, citing examples such as the recent update of 21Shares' S-1 filing for its Spot Dogecoin ETF seeking SEC approval.
They also emphasized that this investment setup complies with current regulatory standards. Furthermore, investors will be able to capture the performance of the crypto market through regulated options.
The Fund intends to establish a subsidiary in the Cayman Islands to manage certain derivative contracts. However, we guarantee that these contracts will not be exceeded. 25% of total assets.
ProShares explores more crypto-related investment options
In 2021, ProShares introduced a Bitcoin Futures ETF, becoming the first Bitcoin-linked ETF in the United States. Since its founding, the company has been actively working on developing more crypto-related investment options.
ProShares increased its interest in the space after its latest filing highlighted that some financial institutions favor a diversified basket of cryptocurrencies to reduce uncertainty surrounding individual assets.
Regarding the CoinDesk 20 Index update process, updates occur every three months. Additionally, it includes some of the most commonly traded coins such as BTC, ETH, XRP, SOL, ADA, and Avalanche.
This is in line with a broader trend, as REX-Osprey has recently filed several ETF applications related to altcoins such as ADA, HYPE, XLM, and SUI.
If approved, the ProShares CoinDesk Crypto 20 ETF will be positioned as one of the first decentralized crypto ETFs in the United States.
Want to present your project in front of the top people in crypto? Get featured in the next industry report that combines data and impact.
