ProShares Seeks SEC Approval for CoinDesk Crypto 20 ETF
ProShares has filed with the U.S. SEC to launch the CoinDesk Crypto 20 ETF, designed to track the CoinDesk 20 Index of the top 20 cryptocurrencies by market cap and liquidity. The fund excludes stablecoins, memecoins, and wrapped tokens. The ETF will use total return swaps and other derivatives via a Cayman Islands subsidiary for synthetic replication, capping direct derivative positions at 25% of its portfolio. The index rebalances quarterly. If approved, the Crypto 20 ETF will list on NYSE Arca with cash creation and redemption. The SEC filing highlights risks from counterparty exposure, market volatility, liquidity constraints, and regulatory uncertainty. The application arrives amid surging institutional demand for crypto ETFs. Bloomberg data shows the SEC reviewing over 155 crypto-based ETP filings, with more than 200 expected within a year. Competing issuers like REX and Osprey are also seeking altcoin ETF approvals. By offering a diversified, derivative-based structure, ProShares aims to attract institutional investors and broaden digital asset participation.
Bullish
The filing of the CoinDesk Crypto 20 ETF is likely bullish for the covered assets. In the short term, approval anticipation could boost demand for top tokens, as institutional investors seek diversified exposure. In the long term, this ETF could lower barriers to crypto adoption among institutions, driving sustained inflows into the major cryptocurrencies. While synthetic replication may limit direct asset purchases, increased market participation and visibility support positive price pressure over time.