ProShares Targets Broader Slice of the Crypto Market With New ETF Proposal

The asset manager has filed paperwork with the U.S. Securities and Exchange Commission (SEC) seeking approval to launch an exchange-traded fund that mirrors the performance of the CoinDesk 20 Index – a benchmark representing the top 20 cryptocurrencies by market size and liquidity.

If approved, the ProShares CoinDesk Crypto 20 ETF would give investors regulated access to a diversified portfolio of digital assets including Bitcoin, Ethereum, XRP, Solana, Cardano, and Avalanche, among others. The index excludes stablecoins and memecoins, focusing only on large, actively traded cryptocurrencies that reflect broader market momentum.

Synthetic Exposure Through Derivatives

Rather than holding cryptocurrencies directly, ProShares plans to use swaps and derivatives to simulate exposure to the index’s performance. This design aligns with the company’s earlier approach – its Bitcoin Futures ETF, launched in 2021, was the first of its kind in the U.S. and remains one of the most traded crypto-related ETFs.

The company’s filing notes that a Cayman Islands subsidiary will manage a portion of the derivatives contracts, though this exposure will be capped at 25% of total fund assets. The fund aims to track the index’s movements before accounting for fees and expenses, offering a balance between diversification and compliance with SEC regulations.

Competing in a Crowded ETF Field

ProShares’ latest move lands in the middle of a highly competitive wave of crypto ETF activity. Rival issuers such as VanEck and 21Shares are pushing ahead with new filings – VanEck recently revised its Solana ETF, slashing fees to 0.3% to attract investors, while 21Shares is seeking approval for a spot Dogecoin ETF.

Meanwhile, the CoinDesk 20 Index has gained attention for its quarterly rebalancing strategy and transparent methodology. By weighting toward liquidity and market cap, it captures much of the same performance trends that institutions track to gauge digital asset adoption.

For traditional investors, products tied to indexes like this are seen as an on-ramp to the crypto economy – offering exposure to multiple assets without the technical challenges of buying or storing them directly.

Institutional Appetite Grows for Diversified Crypto Products

The ProShares filing highlights how institutional demand is shifting from single-asset exposure toward broader crypto baskets. By packaging a variety of leading cryptocurrencies under one regulated product, fund managers can reduce volatility tied to any individual token while still tapping into market growth.

It’s a strategy that mirrors the evolution of early stock market ETFs - moving from narrow exposure to sector-based diversification. If approved, the ProShares CoinDesk Crypto 20 ETF could become a foundational product for wealth managers seeking a compliant way to integrate digital assets into client portfolios.

With REX Shares and Osprey Funds already exploring similar multi-asset ETF products, the race to dominate the next generation of crypto investment vehicles is officially underway.