Ark Invest’s Commitment to Bitcoin
Ark Invest, led by CEO Cathie Wood, is intensifying its commitment to Bitcoin through the submission of multiple new exchange-traded funds (ETFs) aimed at enhancing investment strategies. On October 14, 2025, Ark Invest submitted applications for a series of innovative Bitcoin ETFs to the U.S. Securities and Exchange Commission (SEC), including the Bitcoin Yield ETF and the ARK Defined Income Exposure & Target (DIET) Bitcoin ETFs, specifically DIET Bitcoin 1 and DIET Bitcoin 2.
Innovative Financial Products
These new financial products are designed to cater to different investor needs by offering yield generation and risk management options. The Bitcoin Yield ETF is particularly geared towards those who seek to earn income from their Bitcoin assets; Ark’s strategy may involve options trading techniques, such as covered call writing, to generate additional cash flow while still holding Bitcoin exposure.
DIET Bitcoin ETFs
For more conservative investors, the DIET Bitcoin ETFs provide varying degrees of downside protection. The DIET 1 ETF promises to mitigate losses by 50%, but it only allows for profit sharing once Bitcoin appreciates by at least 5% over a quarterly period. Meanwhile, the DIET 2 ETF offers a more modest 10% downside coverage and permits investors to benefit from any gains when Bitcoin maintains a flat trajectory over the same period.
Regulatory Context
These filings are occurring in a context where the SEC has recently expedited the approval process for cryptocurrency ETFs, reducing decision timelines to 75 days or fewer, down from previously exceeding 240 days. This regulatory shift comes in the wake of a significant market downturn that saw $1 trillion in cryptocurrency value evaporate, leading to concerns among institutional investors regarding market volatility. Consequently, these newly introduced ETFs from Ark Invest may play a crucial role in attracting institutional capital back into the Bitcoin ecosystem.
