ProShares Seeks SEC Approval for CoinDesk Crypto 20 ETF Tracking Bitcoin via CoinDesk 20 Index

• Uses swaps and derivatives to mimic index performance while avoiding direct asset custody.

• Tracks the CoinDesk 20 Index, which includes the largest and most liquid cryptocurrencies by market cap and liquidity.

• Index excludes wrapped tokens, meme coins, and stablecoins, with quarterly updates to reflect market dynamics.

ProShares CoinDesk Crypto 20 ETF offers regulated exposure to top cryptos via derivatives—consider fit, risk, and strategies for your portfolio today, now.

What is the ProShares CoinDesk Crypto 20 ETF?

Direct, comprehensive information: The ProShares CoinDesk Crypto 20 ETF is a proposed U.S. exchange-traded fund designed to track the CoinDesk 20 Index using swaps and other derivatives rather than direct cryptocurrency ownership. It aims to provide investors with regulated exposure to leading cryptocurrencies, including Bitcoin, Ethereum, Solana and XRP, based on the index’s composition.

How does the CoinDesk 20 Index determine inclusion?

The CoinDesk 20 Index comprises the largest and most liquid cryptocurrencies by market capitalization, focusing on coins with substantial liquidity and broad market presence. It undergoes a quarterly update to reflect evolving market dynamics, maintaining a balance between tradability and representation of the top assets in the ecosystem. The index excludes certain categories, such as wrapped tokens, meme coins, and stablecoins, to emphasize widely traded assets with robust liquidity.

Frequently Asked Questions

What is the difference between a swaps-based crypto ETF and a spot-backed crypto ETF?

In a swaps-based ETF, the fund seeks to replicate index returns through derivatives rather than owning the underlying cryptocurrency. A spot-backed ETF would hold the actual crypto assets. This distinction affects custody, counterparty risk, and certain regulatory considerations, while still delivering exposure to the same universe of assets represented by the underlying index.

Is the ProShares CoinDesk Crypto 20 ETF expected to be available to U.S. investors?

If regulators approve the structure, the ETF would be listed on a U.S. exchange and available through brokerage accounts, offering exposure to the CoinDesk 20 Index without direct crypto custody. Investors should consider fees, counterparty considerations, and regulatory developments when evaluating suitability.

Key Takeaways

• Regulated exposure via derivatives: The ETF would use swaps and similar tools to track the CoinDesk 20 Index, avoiding direct asset custody.
• Index-focused composition: The CoinDesk 20 Index emphasizes top-cap, highly liquid cryptocurrencies—BTC, ETH, XRP, SOL and others—with quarterly rebalancing.
• No direct custody; quarterly updates: Investors gain market exposure through a structured vehicle that updates its holdings on a regular cadence, aligning with regulatory expectations.

Conclusion

The ProShares CoinDesk Crypto 20 ETF represents a managed approach to broad crypto exposure via derivatives, anchored to the CoinDesk 20 Index. If approved, it would position itself among the early diversified crypto ETFs offering regulated access to major digital assets without direct ownership, aligning with institutional demand for rule‑based, transparent crypto exposure. As the regulatory landscape evolves, investors should monitor SEC decisions, index methodology updates, and issuer disclosures to assess fit within a broader digital asset strategy.

Sources: SEC filings, ProShares press communications, and the CoinDesk 20 Index methodology presented in institutional materials. This article cites publicly available information and does not link to external sites.