Cathie Wood’s Ark Invest is reinforcing its bullish stance on Bitcoin by launching a new wave of exchange-traded fund (ETF) proposals. On October 14, the investment firm submitted filings to the U.S. Securities and Exchange Commission (SEC) for three new Bitcoin-focused ETFs aimed at appealing to both income-seeking and risk-averse investors.
New Bitcoin Yield ETF Offers Income Through Covered Calls
One of the standout products in Ark Invest’s latest filing is the Bitcoin Yield ETF. This ETF is designed to generate regular income while maintaining exposure to Bitcoin. The fund plans to use options-based strategies, including covered call writing, to produce yield.
Covered calls involve selling call options on assets already held in the portfolio, enabling the fund to collect premiums while still participating in upside potential—albeit with capped gains. This type of strategy is ideal for investors who want to earn income on their Bitcoin positions during times of low price movement or consolidation.
ARK DIET ETFs Add Downside Protection for Cautious Investors
Alongside the yield-focused ETF, Ark Invest also filed for two risk-managed products: ARK DIET 1 ETF and ARK DIET 2 ETF. Both are part of the firm’s “Digital Income & Enhanced Target” (DIET) suite and aim to offer varying levels of downside protection and growth potential.
The ARK DIET 1 ETF is designed to shield investors from up to 50% of losses while offering growth only if Bitcoin rises by more than 5% in a given quarter. This setup is ideal for cautious investors who want meaningful protection during downturns but are willing to forgo returns during flat periods.
Meanwhile, the ARK DIET 2 ETF offers a 10% downside buffer and delivers gains even if Bitcoin’s price remains flat, making it appealing for those looking for a more balanced risk/reward profile in uncertain markets.
A Strategic Move Amid Growing Institutional Interest
These ETF filings come at a time when the SEC is showing increasing openness toward cryptocurrency investment products. With growing institutional demand and recent progress on spot Bitcoin ETF approvals, Ark Invest’s move could position the firm to capture inflows from investors who were previously hesitant due to volatility or lack of income generation.
Market sentiment has been cautious since the crypto market experienced a $1 trillion loss, shaking investor confidence. However, innovative products like these could help restore trust by providing structured exposure with added income or protection.
Conclusion
By offering options-based yield and structured downside protection, Ark Invest is expanding Bitcoin’s appeal to a broader range of investors. Whether you’re seeking regular income or want to limit losses during downturns, these ETFs represent a significant step toward mainstream adoption of crypto assets. As regulatory clarity improves and institutional appetite grows, Ark’s new ETF suite could become a game-changer in crypto investing.
