ProShares and Bitwise File for CRCL-Tracking ETFs After Massive Circle IPO - Unchained

Stablecoin issuer Circle’s hugely successful IPO saw its shares surge from their $31 offering price to as high as $138.57, a near quadrupling in the stock’s value.

ETF issuers ProShares and Bitwise spotted the opportunity to file for new ETFs tied to Circle’s stock, capitalizing on strong investor interest in packaged exposure to the firm’s rapid growth and stablecoin-based business model.

Leveraged ETF specialists ProShares’ proposed fund — the ProShares Ultra CRCL ETF — will aim to deliver double the daily performance of Circle’s stock, using swaps and other derivatives.

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Meanwhile, Bitwise’s fund — the Bitwise CRCL Option Income Strategy ETF — will use a covered call strategy, holding CRCL shares while regularly selling call options against them.

Both filings were submitted on June 6, with a target launch date of Aug. 20, pending U.S. Securities and Exchange Commission approval

News of the filings sparked a further 17% surge in Circle’s stock price.