Cathie Wood's Ark Invest has filed multiple new Bitcoin ETF applications

Cathie Wood’s Ark Invest has filed multiple new Bitcoin ETF applications with the U.S. Securities and Exchange Commission (SEC), marking another strategic move in the institutional investing crypto space. The filings, dated October 14, include ARK Bitcoin Yield ETF, ARK DIET Bitcoin 1 ETF, and ARK DIET Bitcoin 2 ETF.

ARK Bitcoin Yield ETF intends to earn revenue from Bitcoin-related strategies. The fund, as per the filing, will sell options and gather premiums to yield and seek to minimize volatility. It is permitted to invest up to 25% of its total assets in other funds managed by Ark.

The DIET series aims to protect investors from downside risk. The DIET Bitcoin 1 ETF serves as a cushion against half of any market losses, but it only joins the returns after the price of Bitcoin has increased by 5% within a given timeframe. At the same time, the DIET Bitcoin 2 ETF also insulates investors against the first 10% of losses and engages in upside potential after prices rise beyond the beginning of each outcome period.

These reports follow BlackRock’s submission of a request to list the iShares Bitcoin Premium Income ETF on Nasdaq, another yield-focused Bitcoin product. The competition between issuers underscores the increased interest in diversified crypto ETFs to provide income and risk-adjusted exposure.

ETF industry hits record $12.7 trillion

The larger U.S. ETF industry continues to grow, reaching a record $12.70 trillion in assets at the end of September, according to data from ETFGI. Investors saw net flows of $152.5 billion in September alone, the second-highest monthly total on record.

Year-to-date inflows totaled $951.27 billion, surpassing last year’s full-year record. The report said that ETFs have experienced 41 straight months of inflows, indicating investor confidence despite market volatility and high interest rates.

ETFGI’s data also support the conclusion that digital-asset ETFs have evolved into a mainstream investment segment. The Grayscale Bitcoin Mini Trust ETF currently holds $5.46 billion, and the Grayscale Ethereum Mini Trust ETF holds $3.00 billion.

With net inflows of $1.38 trillion in the last 12 months, ETFGI forecasts net flows for the U.S. ETF industry may reach a new peak by the end of 2025, driven by the launch of spot crypto and tokenization-themed ETFs.

Bitcoin Price Reacts to the ETF filings

Bitcoin rose after a surge in ETF filings. The coin is currently trading at $113,051, registering a 1% rise in the last 24 hours. The volume increased by 30% as Federal Reserve Chair Jerome Powell indicated that more rate cuts were likely, leading to increased volatility.

According to CoinGlass, the optimism among derivatives traders was cautious. However, total Bitcoin futures open interest declined 2% to $72.74 billion with minor losses across both CME and Binance futures. Analysts believe the pullback may be a result of profit-taking after investors began rebalancing their portfolios.

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