The First ETF Built for Crypto Stablecoins Just Launched — Here’s What It Means for Investors

TLDR

• ProShares launched the first GENIUS Act-compliant money market ETF, trading under ticker IQMM on NYSE Arca
• The fund invests only in short-term U.S. Treasury bills with a 93-day maturity cap
• It targets stablecoin issuers like Ripple, Tether, and Circle as a compliant place to hold reserves
• The stablecoin market is currently just under $300 billion, with forecasts ranging from $2 trillion to $4 trillion by 2030
• Major institutions including Fidelity, Citi, and Bank of America are reportedly planning their own stablecoins

ProShares launched a new money market ETF on Thursday built specifically for stablecoin reserve management. The fund trades on NYSE Arca under the ticker IQMM.

The product is called the ProShares GENIUS Money Market ETF. It is the first ETF structured around the GENIUS Act, the U.S. stablecoin legislation signed into law last July.

The GENIUS Act requires stablecoin issuers to back their tokens 1:1 with safe, liquid assets. Those assets must be short-term U.S. Treasury bills or similar government securities.

IQMM holds only instruments that qualify as eligible reserves under that law. All holdings have a maturity of 93 days or less, matching the statute’s exact requirement.

ProShares CEO Michael Sapir said the fund takes a conservative approach to cash management. He said transparency and liquidity are its key features.

The fund is aimed at institutional participants, including treasury managers at stablecoin companies. Issuers like Ripple, Circle, and Tether are named as potential users of the product.

Tether recently launched its own USAT stablecoin. Circle issues USDC, currently one of the two largest stablecoins in circulation.

ETF analyst Nate Geraci called the launch a smart move by ProShares. He said issuers can invest in the fund without concerns from a regulatory or operational standpoint.

Who the Fund Is Built For

The fund gives stablecoin issuers a ready-made vehicle to park their reserves in a legally compliant way. Without a product like this, issuers would need to manage short-term Treasury purchases directly.

The structure also helps issuers meet daily redemption requests. Holding shorter-dated bonds reduces the risk of selling at a loss during periods of market stress.

The stablecoin market currently sits just under $300 billion in total circulation. Tether’s USDT and Circle’s USDC lead the market.

What Growth Forecasts Say

Analysts expect the market to grow sharply in the coming years. U.S. Treasury Secretary Scott Bessent has said it could reach $2 trillion by 2028 and $3 trillion by 2030.

Citi set a base-case projection of $1.9 trillion by 2030, with a bull case of $4 trillion. Standard Chartered projected around $2 trillion by end of the decade.

Standard Chartered also warned that up to $500 billion could move out of U.S. bank deposits and into stablecoins by 2028.

Since the GENIUS Act passed, several major institutions have announced plans to launch stablecoins. Fidelity recently launched its FIDD stablecoin, and both Citi and Bank of America are reportedly considering their own.

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