- ARK Invest files S-1 for two CoinDesk 20 crypto ETFs, including one excluding Bitcoin.
- XRP receives nearly 20% allocation in the ARK CoinDesk 20 Crypto ETF.
- Both ETFs invest via futures contracts and will list on NYSE Arca.
Cathie Wood’s ARK Invest filed S-1 registration statements on January 23 for two crypto ETFs tracking the CoinDesk 20 Index. One fund provides exposure to Bitcoin alongside altcoins like Litecoin, while the other focuses on altcoins and excludes Bitcoin. Both ETFs will trade on NYSE Arca and primarily invest through futures contracts.
ARK’s New Crypto ETFs
ARK Invest’s filings cover the ARK CoinDesk 20 Crypto ETF and the ARK CoinDesk 20 ex-Bitcoin Crypto ETF. Both are designed to mirror the daily performance of the CoinDesk 20 Index, which includes 20 major cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).
Others include Chainlink (LINK), Stellar (XLM), Bitcoin Cash (BCH), Sui (SUI), Avalanche (AVAX), Litecoin (LTC), Hedera (HBAR), Crypto.com Coin (CRO), Uniswap (UNI), Aave (AAVE), NEAR, Aptos (APT), Polkadot (POL), and Internet Computer (ICP).
The first ETF provides exposure to Bitcoin along with leading altcoins. The second ETF removes Bitcoin and Bitcoin Cash from its holdings by combining long positions in CoinDesk 20 Index futures and short positions in CME Bitcoin Futures to exclude BTC and BCH performance.
Futures-Based Investment Structure
Both ETFs are futures-based, meaning they will not hold the actual cryptocurrencies. Instead, they will invest in regulated futures contracts tied to the CoinDesk 20 Index. Remaining assets will be held in cash or cash equivalents.
This method is distinct from other crypto index funds, such as the Franklin Templeton Crypto Index ETF, which provides spot exposure to underlying coins like BTC, ETH, XRP, and SOL.
ARK Invest stated the funds’ purpose is to offer institutional-grade exposure to major cryptocurrencies without directly holding the assets. This structure aims to comply with current U.S. regulations while providing diversified market access.
XRP’s Significant Allocation
The ARK CoinDesk 20 Crypto ETF assigns XRP a 19.88% weighting, making it the second-largest holding after Bitcoin at 32.4% and Ethereum at 20.69%. Other notable allocations include Solana (12.88%), Cardano (2.29%), Bitcoin Cash (2.25%), Chainlink (1.61%), Stellar (1.20%), Litecoin (1.10%), and Avalanche (0.99%).
XRP’s near-20% allocation highlights its growing acceptance in professional portfolios. Over the past year, XRP has also appeared in several U.S.-listed crypto funds, including the Bitwise 10 Crypto Index Fund, Grayscale CoinDesk Crypto 5 ETF, and Hashdex Nasdaq Crypto Index US ETF.
Five XRP spot ETFs are currently trading on U.S. exchanges, collectively attracting $1.23 billion in net inflows, bringing total assets under management to approximately $1.36 billion.
Listing and Fund Details
Both ARK ETFs will list on NYSE Arca, with CSC Delaware Trust serving as trustee. Each fund begins with a nominal seed value of $100 and an expected initial capital of around $437,000. These filings coincide with other crypto ETF applications, such as Grayscale’s Binance Coin ETF, reflecting growing institutional interest in diversified cryptocurrency exposure.
If approved, these ETFs will mark ARK Invest’s first funds targeting altcoins beyond Bitcoin, providing regulated exposure to a broad selection of digital assets through futures markets.
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