Latest news with #ProSharesUltraCRCLETF
Yahoo
2 days ago
- Business
- Yahoo
Circle's Wild IPO Sparks ETF Rush Betting on the Hot Stablecoin Stock
(Bloomberg) -- Wall Street's ETF machine kicked into high gear just hours after Circle Internet Group Inc. went public, riding the frenzied initial public offering of the stablecoin giant as crypto technologies enter mainstream finance. Trump Said He Fired the National Portrait Gallery Director. She's Still There. NYC Mayoral Candidates All Agree on Building More Housing. But Where? Senator Calls for Closing Troubled ICE Detention Facility in New Mexico California Pitches Emergency Loans for LA, Local Transit Systems At least three issuers rushed to file related exchange-traded funds following Circle's white-hot Thursday debut. The firm — issuer of USDC, the second-largest stablecoin — saw its shares triple shortly after trading began, reviving animal spirits across an IPO-starved market. Filings for the Bitwise CRCL Option Income Strategy ETF, ProShares Ultra CRCL ETF and T-Rex 2x Long CRCL Daily Target ETF landed with the US Securities and Exchange Commission Friday and Monday. REX Financial's registration replaced an earlier ETF prospectus, effectively shortening the timeline for a potential approval. Bitwise Asset Management Inc.'s ETF seeks to employ a covered call strategy — which enhances the income of the underlying assets — while the versions from ProShares Advisors LLC and REX Financial offer amplified bets on the stock's performance by using derivatives to deliver two times its daily performance. With risk sentiment rekindled, funds tied to speculative assets — including leveraged or inverse bets — are increasingly popular. The rapid-fire pace at which ETF product teams are moving to cash in on the momentum of single stocks exemplifies the intense competition in the $11 trillion ETF arena in the US which has been flooded with more than 4,200 products. Of those, nearly 80 funds track digital-assets in some form, data compiled by Bloomberg show. 'It's an alignment of the stars,' said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. 'It's a crypto company, so that's high demand, it's leveraged and it's a market hungry for IPOs.' Shares of the New York-based firm have soared more than 270% across their first three trading sessions, marking the most high-profile crypto equity debut since Coinbase Global Inc.'s direct listing in 2021. Its $1.1 billion IPO lands amid renewed bullishness for digital assets — fueled in part by a regulatory sea change under President Donald Trump, whose administration has signaled a dramatically friendlier stance toward crypto compared to his predecessor. That shift has emboldened both issuers and traders alike. Single-stock ETFs — many of them leveraged or using options overlays — now account for a record 16% of all new funds launched in 2025, per Bloomberg Intelligence. More than 15 firms are now competing in the space, most of them targeting high-conviction retail traders seeking fast, directional exposure. The ETFs being proposed are also increasingly aggressive: the average volatility of their underlying assets is nearly twice that of those for already approved products, according to BI data. Critical Vote Evidence of the mutability of the crypto crowd emerged on Tuesday as Circle shares fell as much as 10%. If the losses persist it will be the first daily slump since last week's IPO. Circle's dip comes ahead of potentially transformative stablecoin legislation, which is up for a crucial vote Wednesday. The bill is supported by the crypto industry and Trump, whose family's World Liberty Financial project has issued its own stablecoin. Stablecoins are crypto tokens typically designed to be pegged to the value of the US dollar or another traditional currency. Circle's role as the issuer of USDC — a stablecoin with around 29% market share — means the stock is not a pure crypto play. Its business model leans heavily on yield from US Treasuries and other safe assets that back its token. That sets it apart from revenue models like Coinbase, which rely on transaction fees, and has helped fuel investor interest. Retail trading behemoth Cathie Wood's ARK Investment Management, bought over 3 million shares of Circle for its flagship ETF (ticker ARKK) on Thursday, according to its website, placing it among the fund's top 10 largest holdings. The firm bought additional shares for its other funds. The Circle frenzy could set the tone for a broader wave of crypto IPOs. Gemini, the exchange run by the Winklevoss twins, has filed confidentially for a listing this year, while has staffed up with veteran talent to fast-track its plan to go public. 'This is the new trend. As certain companies IPO, we are seeing ETFs, and more specifically some levered ETFs, sprout to take advantage of any tailwinds,' said Mohit Bajaj, director of ETFs at WallachBeth Capital. Following Circle's huge run, 'some ETF issuers are trying to create a product based on it — in hopes that it will have success too.' --With assistance from Vildana Hajric. New Grads Join Worst Entry-Level Job Market in Years The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling What America's Pizza Economy Is Telling Us About the Real One Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again American Mid: Hampton Inn's Good-Enough Formula for World Domination ©2025 Bloomberg L.P.
Yahoo
3 days ago
- Business
- Yahoo
Issuers File for ETFs Tracking Newly Debuted Circle Stock
Circle Internet Group Inc. (CRCL) may have just made its debut as a public company last week, but that hasn't stopped fund providers from looking to launch exchange-traded funds based on its stock performance. On Friday, Bitwise submitted a preliminary prospectus to the Securities and Exchange Commission of the Bitwise CRCL Option Income Strategy ETF, an actively-managed ETF that tracks the share price of Circle using a covered call strategy. On the same day, ProShares submitted a filing for the ProShares Ultra CRCL ETF, a 2x leveraged fund also tracking CRCL. The management fees and tickers weren't shared in either filing. The effective dates would be August 20, 2025. Bitwise declined to comment to as it's in a quiet period. ProShares and Circle did not respond to requests for commentary. Founded in 2013, peer-to-peer payments company Circle is the issuer of USDC, the second-largest stablecoin. It's one of the few pure-play crypto companies listed on the U.S. stock market. Circle's shares were priced at $31 Wednesday and opened at $69 on the New York Stock Exchange amid investor demand. Funds like the Bitwise CRCL Option Income Strategy ETF and ProShares Ultra CRCL ETF are aimed at very short-term speculative investors, and should be avoided by most other investors, said Daniel Sotiroff, senior manager research analyst for Morningstar Research. Leveraged ETFs, he explained, tend to succumb to volatility drag and perform poorly over the long run. 'It always goes wrong,' Sotiroff added. 'I've never seen those things work.' When it comes to covered calls, they're typically a play on yield: The more volatile the underlying asset is, the higher the premiums are that you're going to be able to write, he said. 'There's a lot of this stuff out there, and it fits into the same mold of stuff that investors should ignore—and they'll be better off for it,' said Sotiroff, who recently analyzed the 4,000 ETFs that traded on U.S. exchanges at the end of March 2025 and found that only 461 of them might be considered good, long-term | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Red-Hot Circle Already Has Two ETFs Devoted to It in the Works
Two well-known ETF issuers are racing to bring funds to market that track the explosive rise of Circle's newly public stock. Bitwise and ProShares late Friday each submitted applications with the U.S. Securities and Exchange Commission (SEC) to launch exchange-traded funds (ETFs) tied to Circle (CRCL). Both funds would give investors different ways to play the Circle's surge, which has turned heads since the IPO late last week. Up another 9% today in volatile action, shares have nearly quadrupled from their $31 offering price. ProShares, a major name in leveraged ETFs, filed to create the ProShares Ultra CRCL ETF. The fund is designed to provide twice the daily return of CRCL stock. Leveraged ETFs are popular for short-term trades but carry elevated risk due to their compounding effects over multiple days. Bitwise, on the other hand, is taking a more income-focused route. Its proposed Bitwise CRCL Option Income Strategy ETF would employ a covered call strategy. That involves holding CRCL shares while regularly selling call options against them—generating cash premiums that could help smooth returns, especially if the stock's rise cools off. This kind of fund typically appeals to investors looking for yield rather than high-octane growth. Neither fund has disclosed a ticker yet. The proposed effective date for both products is August 20, though SEC approval timelines can vary. Circle, already a central player in the stablecoin market, has drawn attention from traditional finance and crypto investors alike. If the SEC signs off on these ETFs, they could mark another step in the blending of crypto-linked equities and mainstream investing Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
