First US ETF Lets You Buy Top 20 Cryptos in One Trade

Why pick just one crypto when you can own the top 20 at once? ProShares just launched America's first ETF that bundles the biggest digital assets into a single, tradeable package.

The Crypto Basket Revolution

ProShares unveiled KRYP, the first US-listed ETF designed to track the CoinDesk 20 Index, giving investors exposure to 20 of the largest and most liquid cryptocurrencies through one ticker. It's like buying a sampler pack instead of committing to a single flavor.

The CoinDesk 20 selects assets from the top 250 cryptocurrencies by market cap, applying strict liquidity and exchange-listing requirements. But here's the catch – it excludes stablecoins, memecoins, privacy tokens, and various wrapped assets. The index rebalances quarterly and caps individual holdings to prevent any single crypto from dominating the fund.

ProShares CEO Michael Sapir noted that "as the cryptocurrency market has matured, investors have increasingly looked beyond single-asset exposure." The company already operates 13 crypto-linked ETFs in the US, making it one of the largest players in the space.

Diversification or Dilution?

The appeal is obvious: instead of betting on Bitcoin alone, you're spreading risk across the crypto ecosystem's heavy hitters. If one coin crashes, the others might cushion the blow. If the entire sector rallies, you won't miss out because you picked the wrong horse.

But there's a flip side. Crypto markets are notoriously correlated – when Bitcoin sneezes, altcoins catch pneumonia. Diversifying across 20 cryptos might give you the illusion of safety while delivering similar volatility to a pure Bitcoin play. You're paying management fees for diversification that might not actually diversify much.

For traditional investors, KRYP offers a cleaner entry point than navigating multiple exchanges and wallets. But crypto purists might argue that buying an ETF defeats the purpose of decentralized finance – you're back to trusting traditional financial intermediaries.

The Timing Question

Why launch this now? The crypto market has seen massive institutional adoption, with Bitcoin ETFs already pulling in billions. But those single-asset funds leave investors wanting broader exposure without the complexity of building their own portfolios.

KRYP arrives as crypto regulation becomes clearer and traditional finance embraces digital assets. It's positioned for investors who want crypto exposure but prefer the familiar structure of ETFs over direct token ownership.

The crypto revolution promised to democratize finance. Now we're packaging it back into the very structures it sought to replace. Progress or paradox?