KraneShares Bets Big on Crypto: ETF Giant Prepares Coinbase Top 50 Digital Asset Fund Launch
Wall Street's crypto flirtation gets serious as KraneShares—the $80B ETF heavyweight—files plans for a Coinbase-linked digital asset basket. The proposed fund would track the exchange's 50 largest tokens, giving institutional investors a one-click gateway to crypto's volatile upside (and inevitable drawdowns).
Behind the ticker tape: This isn't KraneShares' first crypto rodeo. Their existing Bitcoin and Ethereum ETFs have soaked up nearly $3B in AUM since 2023. But the 50-token strategy marks a bold pivot toward altcoin exposure—just as SEC scrutiny heats up.
The fine print: Coinbase's index methodology weights assets by market cap and liquidity, with quarterly rebalancing. Translation? Heavy Bitcoin and Ethereum exposure, plus rotating cameos from Solana, BNB, and whichever memecoin survives the next hype cycle.
Why it matters: After years of false starts, regulated crypto products are finally going mainstream. Even Goldman Sachs traders might finally understand what an 'ERC-20' is—assuming they can stop staring at their bonus pools long enough to read the prospectus.
KraneShares Builds Reputation with Alternative Asset Funds
KraneShares, founded in 2023 by Jonathan Krane, is a New York-based asset manager known for funds targeting China, climate themes, and alternative assets.
The firm’s MOVE into crypto ETFs signals a broader shift as traditional asset managers look to capture inflows into digital assets.
KraneShares is majority-owned by China International Capital Corporation, a leading financial institution in China, highlighting the international interest in bringing regulated crypto investment products to U.S. markets.
KraneShares files for Coinbase 50 Index ETF…
Would track performance of 50 largest & most liquid digital assets by market cap w/ a few other filters.
Think we're going to see massive wave of crypto index ETF filings. pic.twitter.com/I07GtoZ8qa
In April, Bloomberg analyst Eric Balchunas revealed that more than 70 cryptocurrency ETFs are currently awaiting review by the SEC.
The lineup features a broad range of digital assets beyond Bitcoin, including XRP, Litecoin (LTC), Solana (SOL), Dogecoin (DOGE), and various crypto derivatives.
According to Balchunas, spot ETF applications for XRP and solana are among the most popular in the current wave, with 10 institutions applying for XRP-based ETFs and six for Solana.
These numbers suggest rising institutional interest in diversifying crypto exposure beyond just Bitcoin and Ethereum.
The surge in applications shows growing market demand and a shifting regulatory environment in the U.S.
Bitcoin ETFs Draw $3B in 13 Days
U.S. spot bitcoin ETFs have seen 13 straight days of inflows, pulling in over $2.9 billion as institutional investors ramp up exposure despite Bitcoin trading sideways near $107,374.
Tuesday alone brought $588.6 million in fresh capital, marking the biggest single-day inflow for June. BlackRock’s IBIT led with $163.7 million, followed by Fidelity’s FBTC and Bitwise’s BITB.
Analysts suggest most of the inflows come from long-only investors, as basis arbitrage opportunities remain limited.
Meanwhile, Bitcoin ETFs are outperforming Gold ETFs, with $3 billion in Bitcoin ETF inflows versus $1 billion in gold ETF outflows over five days, highlighting a shift among investors seeking better hedges against traditional U.S. assets.
The rising interest in spot Bitcoin ETFs comes as corporate adoption continues to accelerate despite macro uncertainties.
Anthony Pompliano’s ProCap BTC acquired 3,724 Bitcoin for $386 million as part of plans to go public through an SPAC merger, while Japan’s Metaplanet raised $517.8 million on the first day of its ambitious “555 Million Plan,” which targets 210,000 Bitcoin by 2027.
