Cathie Wood’s Ark Invest is expanding its Bitcoin strategy with a new wave of ETF filings aimed at both yield-seeking and risk-averse investors.
On October 14, Ark filed with the U.S. Securities and Exchange Commission (SEC) for the ARK Bitcoin Yield ETF and two ARK DIET (Defined Income Exposure & Target) Bitcoin ETFs, DIET 1 and DIET 2. The filings outline products designed to generate income and mitigate downside risk while maintaining Bitcoin exposure.
The Bitcoin Yield ETF will cater to investors seeking returns from their BTC holdings, potentially using options-based strategies like covered calls to generate yield. Meanwhile, DIET 1 and DIET 2 will focus on risk management. DIET 1 aims to provide 50% downside protection with gains triggered only after Bitcoin rises 5% in a quarter, while DIET 2 offers 10% loss protection and gain participation even when BTC performance is flat.
The filings follow the SEC’s recent move to shorten crypto ETF approval times to under 75 days, a major shift from the previous 240-day process.
Ark’s timing is notable, coming shortly after a $1 trillion market crash that heightened institutional concerns over volatility. By introducing yield-generating and buffered Bitcoin ETFs, Ark Invest is positioning itself to attract cautious capital looking for smarter BTC exposure amid a still-fragile market.
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