ProShares and Bitwise Asset Management have filed with regulators for new exchange-traded funds (ETFs) linked to shares of Circle Internet Group, capitalizing on overwhelming institutional interest following the stablecoin issuer’s landmark public listing.
ProShares filed for the ‘Ultra CRCL ETF,’ designed to provide investors with twice the daily return performance of Circle’s common stock. Separately, Bitwise filed for the ‘CRCL Option Income Strategy ETF,’ which aims to generate income using a covered call strategy on Circle shares.
This move comes after Circle’s exceptionally strong market debut. Its Initial Public Offering saw shares surge more than 170% on the first day of trading, catapulting the company’s market capitalization over $20 billion. Major institutional investors, including BlackRock and Ark Invest, backed the offering.
Circle’s prominence is bolstered by USDC, the world’s second-largest stablecoin and the first to achieve full compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. Additionally, Japan’s SBI Holdings announced a significant $50 million joint investment in Circle, underscoring global confidence in the company.
The proposed ETFs represent an evolution in crypto-linked investment products catering to diverse investor strategies. They are targeted for an effective launch date of August 20, 2024, signaling a maturing market infrastructure.