Cathie Wood Expands Ark Invest’s Crypto Push with Three Fresh Bitcoin ETF Filings

Key Takeaways:

• Ark Invest has submitted applications for three distinct Bitcoin ETFs, each targeting a specific investor risk profile.
• The new funds represent a strategic expansion beyond its existing spot Bitcoin ETF, aiming to capture more market segments.
• This move occurs as BlackRock solidifies its market leadership, partly due to a recent SEC ruling that expanded options trading.

On October 14, Cathie Wood’s asset management firm Ark Invest submitted applications to launch three new Bitcoin exchange-traded funds (ETFs). These funds are called ARK Bitcoin Yield ETF, ARK DIET Bitcoin 1 ETF, and ARK DIET Bitcoin 2 ETF. 

Market observers believe the move signals growing competition among Bitcoin ETF issuers trying to offer investors simpler ways to invest in Bitcoin.

Each Bitcoin ETF Takes a Different Approach to Investors

According to new SEC filings, Ark Invest’s latest Bitcoin ETF lineup gives investors several ways to approach the crypto market.

Cathie Wood and Ark Invest filed multiple new Bitcoin ETFs today (October 14, 2025):

– ARK Bitcoin Yield ETF
– ARK DIET Bitcoin 1 ETFs (Q1–Q4)
– ARK DIET Bitcoin 2 ETFs (Q1–Q4)

All filings are preliminary prospectuses under the ARK ETF Trust pic.twitter.com/bpXszQg1z3

— Ark Invest Tracker (@ArkkDaily) October 15, 2025

The ARK Bitcoin Yield ETF aims to generate income from Bitcoin-linked strategies, offering exposure to Bitcoin while managing volatility and producing steady returns.

To balance risk, the fund plans to invest up to 25% of its total assets in Ark’s own products, appealing to income-focused investors seeking more stability in the unpredictable crypto space.

For investors focused on risk mitigation, the ARK DIET Bitcoin 1 ETF provides 50% downside protection, meaning only half of potential losses are absorbed. 

It captures gains after Bitcoin’s price rises more than 5% in a quarter, a setup for investors who want growth without full exposure to volatility.

Taking a more conservative approach, the ARK DIET Bitcoin 2 ETF extends that safety net further, covering the first 10% of any decline and joining upside performance only after Bitcoin’s price exceeds its starting level. 

This option is designed for investors who prioritize capital protection during turbulent markets.

Collectively, these funds demonstrate Ark’s effort to reach a broader range of investors, from those chasing returns to those seeking consistency or security.

Is BlackRock’s Grip on Bitcoin ETFs Fueling Ark Invest’s New Strategy?

Analysts believe Ark’s latest filings respond directly to BlackRock’s growing dominance in the Bitcoin ETF market.

Since the approval of spot Bitcoin ETFs in the U.S., BlackRock’s iShares Bitcoin Trust (IBIT) has stayed ahead in both liquidity and inflows. 

Even during the October 10 downturn, the BlackRock Bitcoin ETF attracted inflows of $74.2 million, while Ark’s 21Shares Bitcoin ETF saw $6.2 million in outflows.

Related story: U.S. Bitcoin ETFs Record $326 Million Outflow Amid Trade War Fears

BlackRock’s lead grew stronger in July when the SEC raised the limit for options tied to Bitcoin ETFs from 25,000 to 250,000 contracts, a move that expanded institutional access and boosted market liquidity. 

🚨 Big news: SEC just approved a huge 10x boost in options position limits for BTC ETFs like IBIT and GBTC — jumping from 25,000 to 250,000 contracts! 🚀
Here’s why this matters:
1️⃣ BTC ETF options have been trading, but open interest and volumes were capped — now, with max… pic.twitter.com/juOkPSK5Gj

— AI·Socatis (@SocatisAI) July 30, 2025

Following that change, IBIT managed to amass $1.9 billion in options exposure, reinforcing its edge among rivals.

In September, BlackRock filed for another Bitcoin ETF, the iShares Bitcoin Premium Income ETF, designed to generate income through covered call strategies.

Ark’s Bitcoin Yield ETF takes a similar approach, using options to create a steady stream of income while maintaining exposure to Bitcoin’s price swings. 

Both firms are now competing in the same space, testing income-driven products aimed at investors who want returns without extreme volatility.

As both companies roll out new Bitcoin ETF products, the rivalry is heating up. For investors, the real question is what matters most: stable income, protection from market swings, or long-term growth. 

Regardless of their choice, the growing competition between Ark Invest and BlackRock is likely to reshape how traditional investors approach digital assets in the years ahead.