Stablecoin ETF with GENIUS Act-compliant money market

Institutional demand for regulated crypto exposure is driving new products such as the stablecoin etf, which now has a dedicated money market vehicle tied to U.S. legislation.

ProShares rolls out GENIUS Act-compliant money market ETF

ProShares has listed a new money market fund on NYSE Arca under the ticker IQMM, designed specifically for stablecoin reserve management. The ProShares GENIUS Money Market ETF is the first exchange-traded fund structured under the GENIUS Act, the U.S. stablecoin law signed last July, and it targets issuers seeking fully compliant reserve strategies.

The GENIUS Act requires that stablecoin tokens be backed 1:1 with safe, liquid assets. Those reserves must be short-term U.S. Treasury bills or similar government securities. Moreover, the statute specifies strict maturity limits, which directly shape IQMM’s portfolio construction and risk profile.

IQMM invests only in instruments that qualify as eligible reserves under the law, holding securities with a maximum maturity of 93 days. This cap mirrors the GENIUS Act’s exact requirement. That said, the tight maturity window also positions the fund as a conservative cash management tool for institutions that prioritize liquidity.

ProShares says the ETF follows a cautious approach, emphasizing transparency and daily liquidity. The strategy focuses exclusively on short-term U.S. government paper rather than credit instruments, which may appeal to issuers that want to simplify compliance and reduce operational complexity in managing their reserves.

Target users and role in stablecoin reserve management

The fund is built for institutional participants, primarily treasury and risk managers at stablecoin issuers. Companies such as Ripple, Circle, and Tether are cited as potential users, since they must maintain large pools of highly liquid assets to back their tokens and satisfy regulatory expectations.

With this structure, issuers can use a single vehicle instead of managing rolling purchases of short-term Treasuries in-house. However, they still retain exposure to U.S. government debt markets, just via an ETF wrapper. This may streamline reporting and oversight, which are critical for large, systemically visible stablecoin operators.

The ETF’s tight maturity profile is designed to support daily redemption needs. Holding only shorter-dated bonds helps reduce interest rate risk and the chance of realizing losses when selling in stressed markets. Moreover, this setup may limit mark-to-market volatility, which is important when reserves must track token liabilities closely.

The global stablecoin market currently stands at just under $300 billion in circulation, with USDT and USDC dominating issuance. Tether recently rolled out its USAT stablecoin, while Circle continues to expand the footprint of USDC across multiple blockchains and regions, reinforcing the need for scalable reserve frameworks.

Regulated products that focus on stablecoin reserve management could grow in importance as more issuers emerge. While the new ETF is primarily aimed at institutions rather than retail traders asking “is there a stablecoin etf” on forums, its structure may still shape how future offerings are built and regulated.

How IQMM fits into the regulatory and market landscape

The stablecoin etf concept behind IQMM is tightly linked to the GENIUS Act, which formalizes reserve standards in U.S. law. By aligning directly with that framework, the ETF offers a straightforward way for issuers to demonstrate that their backing assets meet statutory criteria, rather than assembling bespoke portfolios that regulators must review case by case.

Because IQMM invests solely in short-term Treasury instruments with maturities of 93 days or less, it operates similarly to a traditional government money market fund. However, its marketing and design focus explicitly on stablecoin issuers, rather than on corporate treasuries or retail cash managers, which sets it apart from broader money market Treasury bills vehicles.

From a risk perspective, the conservative mandate is intended to prioritize capital preservation and immediate liquidity. Moreover, by concentrating on government paper instead of commercial paper or bank deposits, the fund aligns with policymakers’ push to keep stablecoin reserves in instruments that are unlikely to freeze or become impaired during crises.

Institutional investors evaluating how to invest in stablecoin etf exposure will likely view IQMM as a niche product. It is not positioned as a speculative crypto play, but rather as infrastructure supporting a specific corner of the digital asset ecosystem, particularly those managing large pools of dollar-pegged tokens.

Market growth forecasts and institutional interest

Analysts expect the stablecoin sector to expand significantly over the rest of this decade. U.S. Treasury Secretary Scott Bessent has said the market could reach $2 trillion by 2028 and $3 trillion by 2030. Moreover, these projections assume continued integration of tokenized dollars into payments, trading, and on-chain finance.

Citi has outlined a base-case projection of $1.9 trillion in stablecoin circulation by 2030, with a bull-case scenario of $4 trillion. Standard Chartered has issued a similar forecast of around $2 trillion by the end of the decade. However, the bank also warned that as much as $500 billion could migrate from U.S. bank deposits into stablecoins by 2028, reshaping funding flows.

Since the GENIUS Act became law last July, several large financial institutions have stepped into the market. Fidelity recently launched its FIDD stablecoin, while Citi and Bank of America are reportedly exploring their own tokenized dollar products. Moreover, this wave of entrants indicates that stablecoins are no longer confined to crypto-native issuers.

As more banks and asset managers roll out products, demand for standardized, GENIUS Act-aligned reserve vehicles could increase. Funds built strictly around short term treasury bills may become core tools for institutional stablecoin custody teams, treasury desks, and risk officers seeking predictable structures rather than bespoke portfolios.

Implications for investors and the wider digital asset ecosystem

For investors, IQMM highlights how the intersection between traditional finance and digital assets is moving toward regulated, low-risk structures. It is not designed to compete with volatile crypto tokens, but to underpin them. That said, the growing ecosystem of reserve-focused ETFs may indirectly influence how comfortably institutions adopt stablecoins in trading and payment workflows.

Because the fund operates like a government money market ETF, its return profile should track prevailing short-term U.S. interest rates rather than crypto market cycles. Moreover, if forecasts for stablecoin supply reaching into the trillions by 2030 prove accurate, the scale of reserves parked in vehicles like IQMM could become a significant feature of global fixed income markets.

Ultimately, the launch of IQMM marks a step toward more formalized infrastructure for stablecoin reserves. As regulation such as the GENIUS Act is implemented and more institutions, from Fidelity to major banks, enter the space, specialized money market products are likely to play a growing role in bridging traditional capital markets with on-chain finance.