TLDR
- Cathie Wood’s ARK Invest filed for three new Bitcoin ETFs on October 14, 2025: ARK Bitcoin Yield ETF, ARK DIET Bitcoin 1 ETF, and ARK DIET Bitcoin 2 ETF
- The Bitcoin Yield ETF will generate income through options-based strategies like selling covered calls to collect premiums
- ARK DIET Bitcoin 1 ETF offers 50% downside protection with upside participation after Bitcoin rises 5% each quarter
- ARK DIET Bitcoin 2 ETF provides 10% downside protection and allows gains when Bitcoin trades above its starting quarterly price
- The SEC recently reduced crypto ETF approval time to 75 days or less, down from over 240 days previously
Cathie Wood’s ARK Invest submitted paperwork for three new Bitcoin ETFs to the U.S. Securities and Exchange Commission on October 14, 2025. The new products are part of the ARK ETF Trust and include the ARK Bitcoin Yield ETF, ARK DIET Bitcoin 1 ETF, and ARK DIET Bitcoin 2 ETF.
The filings show ARK Invest expanding its cryptocurrency product lineup. Each fund is designed to serve different investor needs in the digital asset market.
The ARK Bitcoin Yield ETF aims to produce income for investors holding Bitcoin exposure. The fund plans to use options-based strategies to generate returns.
According to the filings, the yield ETF may write covered calls on Bitcoin. This strategy involves selling call options to collect premiums while maintaining underlying Bitcoin exposure.
The two DIET Bitcoin ETFs focus on protecting investors from losses. DIET stands for Defined Income Exposure & Target.
ARK DIET Bitcoin 1 ETF offers 50% downside protection to investors. This means the fund absorbs half of any Bitcoin price declines during the quarter.
Investors in DIET Bitcoin 1 can participate in gains after Bitcoin rises 5% above its starting price for the quarter. The fund provides a buffer against losses while limiting initial upside participation.
Different Risk Levels for Different Investors
ARK DIET Bitcoin 2 ETF provides less downside protection at 10%. The fund covers only one-tenth of Bitcoin price drops during the quarter.
However, DIET Bitcoin 2 allows investors to capture gains when Bitcoin trades above its quarterly starting price. This means investors can participate in upside movements sooner than with DIET Bitcoin 1.
The three filings are preliminary and need regulatory approval. The SEC will review each product before they can launch.
The SEC recently changed its approval process for crypto ETFs. The regulator now aims to make decisions within 75 days or less.
This represents a change from the previous timeline. Before this adjustment, SEC decisions on crypto ETFs could take more than 240 days.
Growing Presence in Crypto Markets
ARK Invest already manages several blockchain and Bitcoin-related funds. The firm has built a portfolio of cryptocurrency investment products over recent years.
Cathie Wood has publicly supported Bitcoin’s long-term prospects. The new ETF filings represent another step in ARK Invest’s cryptocurrency strategy.
The filings come after recent volatility in crypto markets. A market decline erased $1 trillion in value across digital assets.
Institutional investors have shown concern about cryptocurrency price swings. The downside protection features in ARK’s DIET Bitcoin ETFs could address these concerns.
The streamlined SEC approval process may lead to faster product launches. ARK Invest’s three new Bitcoin ETFs await regulatory review before they can begin trading.
