Cathie Wood's ARK Invest has filed with U.S. regulators to launch two cryptocurrency exchange-traded funds tracking the CoinDesk 20 index, marking the firm's most ambitious foray yet into diversified digital asset investing. The filings, submitted on January 23, represent a strategic bet that investors want crypto exposure beyond just Bitcoin.

The proposed funds would list on NYSE Arca if approved, offering retail investors a new way to access the broader cryptocurrency market without direct token custody—a structure that has proven popular with the Bitcoin and Ethereum ETFs approved in recent years.

Two Funds, Two Strategies

ARK's filing describes two distinct products designed to serve different investor preferences:

The ARK CoinDesk 20 Index Fund would track the full CoinDesk 20 index, providing exposure to major tokens including Bitcoin, Ethereum, Solana, XRP, and Cardano. This fund offers the most comprehensive crypto exposure available in an ETF wrapper.

The ARK CoinDesk 20 ex-Bitcoin Fund takes an innovative approach by pairing long index futures with short Bitcoin futures, effectively removing Bitcoin exposure while maintaining positions in the remaining tokens. This structure appeals to investors who already hold Bitcoin elsewhere or who want exposure to altcoins without concentrating further in the market's largest cryptocurrency.

"These filings represent ARK's belief that diversified crypto exposure—not just Bitcoin—will be the next major growth area in digital asset investing."

— ARK Invest Filing Documentation

XRP Gets Major Weighting

One notable aspect of the proposed ETF is XRP's significant allocation. According to the filing, XRP carries a 19.88% weighting in the index, making it one of the fund's largest components alongside Bitcoin and Ethereum.

This substantial XRP exposure could prove controversial given the token's regulatory history, but also reflects its market capitalization and trading volume, which have both surged following recent legal clarity.

Following the Bitcoin ETF Playbook

ARK's filing follows similar, still-unapproved crypto index ETF proposals from WisdomTree and ProShares. The firm appears to be betting that regulatory attitudes toward diversified crypto products will soften following the successful launches of spot Bitcoin and Ethereum ETFs.

The structure mirrors what worked for those products: futures-based exposure that avoids the custody complications of holding actual tokens, combined with traditional ETF mechanics that investors understand.

ARK's Crypto Track Record

Wood and ARK have been consistent crypto bulls through multiple market cycles. The firm's Big Ideas 2026 report forecast that the crypto market could reach a market cap of $28 trillion by 2030, citing rising Bitcoin adoption and accelerating institutional interest.

This forecast assumes a compound annual growth rate of 61% for the crypto market, with ARK projecting Bitcoin could reach between $950,000 and $1 million per token by decade's end.

The new ETF filings suggest ARK wants to capture growth beyond Bitcoin as well. The firm has been actively adding crypto-adjacent stocks to its flagship funds, including recent purchases of Coinbase, Circle Internet Group, and Bullish shares totaling approximately $22 million in late January alone.

Timing and Market Context

The filings arrive at an interesting moment for cryptocurrency markets. Bitcoin has been consolidating near $88,000 after failing to sustain its push toward $100,000, while altcoins have shown mixed performance.

Tom Lee of Fundstrat, a prominent crypto analyst, recently declared Ethereum "dramatically undervalued" and predicted the token could reach between $7,000 and $9,000 by early 2026. Such bullish sentiment on non-Bitcoin tokens supports the thesis behind ARK's diversified approach.

Regulatory Hurdles Remain

While the filings demonstrate ARK's ambitions, approval is far from guaranteed. The SEC has historically been cautious about crypto products, and index funds tracking multiple tokens present additional complexity around custody, valuation, and market manipulation concerns.

Previous multi-token crypto ETF proposals have faced extended review periods and requests for additional information. ARK's reputation and track record may help, but the firm should expect a lengthy regulatory process.

What It Means for Investors

If approved, the ARK CoinDesk 20 funds would provide several benefits:

  • Simplified diversification: One purchase provides exposure to 20 tokens, eliminating the need to manage multiple exchange accounts and wallets
  • Tax efficiency: ETF structure offers potential tax advantages over direct token ownership
  • Retirement account access: ETFs can be held in IRAs and 401(k)s where direct crypto ownership is often impossible
  • Professional management: Index rebalancing handles portfolio maintenance automatically

The ex-Bitcoin variant specifically addresses a common portfolio construction problem: investors who accumulated Bitcoin through earlier vehicles may want crypto diversification without increasing their Bitcoin concentration.

ARK's 2025 Performance Adds Credibility

ARK's filing comes on the heels of a strong 2025 performance that helped restore some credibility lost during the 2022 tech wreck. The firm's flagship funds handily outperformed major benchmarks, led by ARK Space & Defense Innovation ETF's 48.46% gain and ARK Autonomous Technology & Robotics ETF's 48.4% rally.

That performance momentum may influence how regulators and investors view the new crypto proposals. A firm with recent success may face less skepticism than one still recovering from poor returns.

Looking Ahead

ARK's crypto index ETF filings represent the next evolution in digital asset investing—a move from single-token products to diversified portfolios that mirror traditional index fund principles.

Whether regulators approve these products in 2026 remains uncertain, but the filings themselves signal that major asset managers see a future where crypto index funds are as commonplace as S&P 500 trackers. For investors watching the space, ARK's move suggests the crypto ETF revolution is just getting started.