Two major ETF providers are gearing up to launch funds that capitalize on the explosive growth of Circle’s newly public stock. Both Bitwise and ProShares submitted applications with the U.S. Securities and Exchange Commission (SEC) late Friday to introduce ETFs linked to Circle (CRCL).
These new funds offer investors diverse ways to benefit from Circle’s recent IPO, which has generated significant attention. Since its debut last week, CRCL shares have surged nearly 9% today amid volatile trading, nearly quadrupling their $31 offering price.
ProShares, renowned for its leveraged ETFs, plans to launch the ProShares Ultra CRCL ETF. This fund aims to deliver twice the daily return of CRCL stock, making it a popular choice for short-term traders willing to accept higher risk due to the effects of daily compounding.
Meanwhile, Bitwise is taking a different approach with its proposed Bitwise CRCL Option Income Strategy ETF. This fund would employ a covered call strategy, holding CRCL shares while regularly selling call options against them. The goal is to generate income from premiums, which can help smooth out returns if the stock’s momentum slows down. Such funds tend to attract investors seeking steady income rather than rapid growth.
Neither ETF has announced a ticker symbol yet. The proposed effective launch date for both funds is August 20, though SEC approval timelines can vary.
Circle has already established itself as a key player in the stablecoin market, drawing attention from both traditional finance and crypto investors. If approved, these ETFs could further bridge the gap between crypto-linked equities and mainstream investment strategies, signaling a growing acceptance of digital assets in traditional portfolios.
