Cathie Wood's Ark Invest has submitted three new
Bitcoin
ETF applications to the U.S. Securities and Exchange Commission (SEC), marking a significant move to broaden its presence in institutional cryptocurrency investments. The applications, filed on October 14, feature the
ARK
Bitcoin Yield ETF as well as two defined outcome funds—ARK DIET Bitcoin 1 and ARK DIET Bitcoin 2—created to provide both income opportunities and downside risk mitigation for investors,
as reported by Coinspeaker
. This development comes amid a notable increase in spot Bitcoin ETF activity, with net inflows reaching $103 million on October 14 alone,
according to MoneyCheck
.
Coinspeaker further explains that the ARK Bitcoin Yield ETF seeks to generate returns through options strategies, using premium sales to manage volatility and allowing up to 25% of its assets to be allocated to other Ark-managed funds. The DIET series, on the other hand, utilizes a structured risk management approach. DIET 1 offers investors 50% protection against losses but only benefits from gains after Bitcoin's price rises by more than 5% in a quarter, while DIET 2 provides 10% downside protection and participates in gains once Bitcoin exceeds its initial value for the period,
as detailed by Cryptopolitan
. These offerings reflect a broader industry movement, with firms such as
BlackRock
and VanEck also launching Bitcoin ETFs focused on yield and risk management,
Coinotag reported
.
Recent SEC approval of standard listing rules for commodity-based ETFs has sped up the approval timeline, shortening the review period from 240 days to about 75 days,
InsideBitcoins reported
. This regulatory update has triggered a surge in crypto ETF applications, with experts forecasting a wave of new products in the near future, according to InsideBitcoins. The faster process has also heightened competition, as evidenced by aggressive fee reductions among major firms. BlackRock dropped its Bitcoin ETF fee to 0.30%, leading Ark to lower its own fee to 0.25% to stay competitive,
U.Today reported
.
Investor confidence in crypto ETFs is reflected in the record-breaking growth of the U.S. ETF market, which hit $12.7 trillion in assets by the end of September, Cryptopolitan reports. Since early 2024, spot Bitcoin ETFs have attracted over $62.5 billion in net inflows, with Fidelity's FBTC leading on October 14 by bringing in $133 million, according to MoneyCheck. Bitcoin's price, now hovering around $113,000, has also climbed 1% in the past day, showing renewed investor enthusiasm.
Ark's current Bitcoin ETF,
ARKB
, manages $5 billion in assets and has seen $2.33 billion in inflows since its launch in 2024, Coinspeaker notes. These latest filings highlight Cathie Wood's ongoing support for Bitcoin as "digital gold," underscoring its importance in institutional investment portfolios, MoneyCheck points out. As the SEC's regulatory framework evolves, the crypto ETF sector is set for rapid growth, with Ark and its rivals positioning themselves to meet increasing demand for diversified crypto investment options, Coinotag adds.
