TL;DR:
- KRYP is the first U.S. ETF designed to track the performance of the CoinDesk 20 Index.
- The fund offers exposure to the 20 largest and most liquid cryptocurrencies, excluding memecoins and stablecoins.
- The strategy utilizes swap agreements to replicate the index without directly investing in physical assets.
ProShares, a leader in exchange-traded funds, has officially launched the ProShares KRYP ETF. This innovative financial product seeks to capture the performance of the CoinDesk 20 Index, a benchmark that groups the most prominent digital assets.
With this innovation, U.S. investors will have a tool at their disposal to diversify their capital across a basket of 20 cryptocurrencies. In this way, dependence on a single asset, such as Bitcoin or Ethereum, is minimized.
The index on which KRYP is based uses a market capitalization weighting methodology with specific caps. Furthermore, the portfolio is rebalanced every three months to adapt to changes in leadership within the crypto sector.
CoinDesk 20 Index Structure and Investment Strategy
The selection of assets for the fund has been rigorous, choosing from the top 250 digital assets by market cap. However, segments such as memecoins, stablecoins, and privacy tokens were excluded to ensure an institutional and liquid focus.
Michael L. Sapir, CEO of ProShares, highlighted that today’s investors are looking to go beyond exposure to a single asset. Therefore, the fund uses an approach based on transparent rules that mitigates excessive concentration risk.
It is worth noting that KRYP operates through swap agreements and does not hold cryptocurrencies directly in its custody. As a result, ProShares strengthens its position as one of the most important issuers of crypto funds in the United States.
In summary, this launch is a major step toward the maturation of the digital asset class. Because of this structure, both retail and institutional investors can tactically manage risk and improve returns in a constantly evolving market.
