ARK Invest submits an application for a Crypto 20 ETF from CoinDesk

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ARK Invest’s asset manager has officially announced to U.S. regulatory authorities its intention to create an exchange-traded fund (ETF) tracking the CoinDesk Crypto 20 index. This move, initially revealed by Eric Balchunas, an ETF analyst at Bloomberg, marks a new step in ARK’s strategy to democratize access to cryptocurrency investment products.

An Initiative Reflecting Growing Interest in Structured Products

Submitting this application to regulators demonstrates ARK Invest’s increasing strategic commitment to the crypto asset ecosystem. According to data relayed by NS3.AI, this initiative is part of a broader trend where traditional investment firms seek to offer indexed solutions for access to digital assets. The concept of an ETF tracking a recognized index like the CoinDesk Crypto 20 would provide institutional and retail investors with diversified and regulated exposure to the cryptocurrency market.

CoinDesk Crypto 20: A Market-Representative Index

The CoinDesk Crypto 20 index provides weighted exposure to the top 20 cryptocurrencies by market capitalization and liquidity. By choosing to follow this index rather than constructing a proprietary basket, ARK Invest facilitates transparency and comparability for investors. This established index offers a balanced assessment of the overall health of the crypto market, beyond just Bitcoin or Ethereum.

Implications for Institutional Adoption of Cryptocurrencies

This regulatory approach highlights how major investment players are gradually integrating digital assets into their product offerings. An ETF tracking the CoinDesk Crypto 20 index could catalyze increased institutional capital in the sector, while also enhancing the legitimacy of cryptocurrencies among conservative investors seeking standardized and supervised exposure to digital assets.

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