ProShares is taking steps to introduce a diversified investment tool in the cryptocurrency market. The firm has submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch an ETF tracking the CoinDesk 20 Index. This index comprises major cryptocurrencies like Bitcoin 
$77,690, Ethereum 
$2,329, XRP, and Solana 
$86. The ETF aims to offer investors a broad cryptocurrency theme through a single index, measuring the performance of the top 20 cryptocurrencies by market capitalization.
ProShares CoinDesk Crypto 20 ETF: Structure and Content
The ProShares CoinDesk Crypto 20 ETF will indirectly take positions through swap agreements, derivatives, and similar financial instruments based on the index components, rather than holding cryptocurrencies directly. It plans to establish a subsidiary in the Cayman Islands for some derivative transactions. However, these assets will remain limited to 25% of its holdings.
The CoinDesk 20 Index includes cryptocurrencies with the highest market capitalization and liquidity, such as Bitcoin, Ethereum, XRP, Solana, Cardano 
$0.247444, and Avalanche. The index is rebalanced quarterly, excluding stablecoins, memecoins, and wrapped tokens. This structure focuses the ETF on high-volume cryptocurrencies with lower volatility risk.
In an increasingly competitive environment, highlighted by VanEck’s fee reduction in its Solana ETF application to 0.3%, ProShares’ initiative marks a new era for cryptocurrency index ETFs. The company’s plan centers on providing investors access to the overall performance of the cryptocurrency market within a regulated framework.
Rising Institutional Demand Amid Intensifying ETF Competition
Following high demand for its Bitcoin futures ETF launched in 2021, ProShares expands its crypto-themed product range. The recent ETF application caters to institutional investors seeking diversified asset portfolios to reduce volatility in individual assets.
According to Bloomberg ETF analyst Eric Balchunas, the SEC is currently reviewing a total of 155 crypto-based exchange-traded product files, tracking 35 different cryptocurrencies. Balchunas predicts this number could exceed 200 within the next year. Other issuers like REX and Osprey are also enhancing diversity with new ETF applications targeting altcoins like ADA, HYPE, XLM, and SUI.
If the SEC approves the ProShares CoinDesk Crypto 20 ETF, it would be one of the first broad-based cryptocurrency index ETFs in the U.S. This could accelerate traditional financial institutions’ systematic inclusion of cryptocurrencies in their portfolios.
