ProShares' stablecoin-ready ETF sees $17 billion debut, sparking speculation about Circle
Analysis
Price Impact
MedThe launch of proshares' stablecoin-ready etf (iqmm) with a massive $17 billion debut has sparked significant speculation in the market. while initial data suggests internal fund movements rather than a large issuer like circle moving assets, the etf's specific design to comply with the genius act makes it a potential destination for stablecoin reserves. this could lead to increased demand and inflows for stablecoins like usdc and usdt as the sector faces increasing regulation.
Trustworthiness
MedThe trustworthiness is rated as medium because while the event itself is confirmed (etf launch and debut volume), the speculation about the source of funds (circle vs. internal movements) is still being analyzed. the potential future impact on stablecoin reserves is a logical projection based on regulatory trends and the etf's design.
Price Direction
BullishThe launch of an etf designed to hold stablecoin reserves, especially one that complies with new regulations, is bullish for stablecoins. it provides a regulated and potentially safer avenue for issuers and investors to hold these assets, which could increase overall demand and adoption of stablecoins.
Time Effect
LongThe initial $17 billion debut volume is a short-term event, but the long-term effect will depend on how regulatory clarity evolves and whether stablecoin issuers indeed allocate significant portions of their reserves to this or similar regulated products over time. the potential for tens of billions in future inflows suggests a prolonged impact.
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Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email ProShares' stablecoin-ready ETF sees $17 billion debut, sparking speculation about Circle Analysts speculated that a large issuer like Circle might be moving reserve assets en masse into the ETF, but data show otherwise. By Krisztian Sandor | Edited by Aoyon Ashraf Feb 22, 2026, 3:00 p.m. Make us preferred on Google (Ryan Quintal/Unsplash, Modified by CoinDesk) What to know : ProShares launched IQMM, a money market ETF designed to comply with U.S. stablecoin reserve requirements under the GENIUS Act. The fund saw over $17 billion in first-day trading, sparking speculation about a large stablecoin issuer like Circle moving funds. Data suggests that internal fund movements, not Circle, are likely behind the volume. Still, the IQMM could see demand from the $300 billion stablecoin industry as the sector gets increasingly regulated, 10x Research's Markus Thielen said. In this article BTC BTC $ 67,541.70 ◢ 1.32 % ProShares’ new ETF built for the fast-growing, $300 billion world of stablecoins had a massive launch, fueling speculation that one major stablecoin issuer may be involved. The fund , called the ProShares GENIUS Money Market ETF (IQMM), is designed to hold short-term U.S. Treasuries and meet the reserve requirements laid out in the GENIUS Act, a federal law regulating stablecoin issuers in the U.S. It’s the first ETF structured specifically to fit those rules, and that positioning may have caught the attention of some of the largest players in crypto. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . The ETF logged a whopping $17 billion in trading volume on its first day, suggesting that some large players were allocating to the fund. For context, BlackRock’s spot bitcoin ETF — one of the most anticipated launches in many years— saw $1 billion in first-day volume. Circle moving funds or internal shuffle? The massive volume has left analysts speculating about the source of the inflows. Nate Geraci, president of The ETF Store, said in an X post that the heavy flows might signal a deal with a major U.S.-based stablecoin issuer. "Looking at assets, believe that would only leave Circle," he said, referring to the company behind the $74 billion USDC token. However, Circle’s main reserve fund for USDC, managed by BlackRock, hasn’t shown any major changes so far. It held nearly $64 billion in assets as of Friday, up from $59 billion at the end of January, data shows. What's more likely is that the initial volume came from ProShares’ own funds moving assets for cash management purposes. Ben Johnson, head of client solutions for asset management at Morningstar, noted that one of ProShares’ leveraged ETFs, QTTT, moved $6 billion into IQMM on launch day. That kind of internal allocation would explain a large portion of the day-one activity. Playbook for stablecoin reserves Still, demand from stablecoin issuers is a real possibility. With over $300 billion in U.S. dollar stablecoins in circulation, a significant portion of those reserves could eventually be allocated to ETFs like IQMM. Markus Thielen, founder of 10x Research, wrote in a Friday report that IQMM is "currently the only purpose-built tool" that meets the GENIUS Act rules while providing high-speed liquidity. That could make it a go-to choice for U.S.-based issuers like Circle, Paxos and BitGo — and even for banks looking to issue their own tokenized deposits under the new law. Tether, which runs the largest stablecoin in the world with the $184 billion USDT token, has also rolled out a stablecoin with federal bank Anchorage Digital in the U.S. market. As stablecoins become increasingly regulated with new tokens launching, tens of billions in additional assets could eventually flow into funds like IQMM, Thielen said. Stablecoins ProShares market analysis Circle Markus thielen More For You ‘Bitcoin to zero’ searches spike in the U.S., but the bottom signal is mixed By Shaurya Malwa | Edited by Sheldon Reback 19 hours ago Google Trends data shows the term hit a record high in the U.S. this month, though global interest has fallen since peaking in August. What to know : U.S. searches for “bitcoin zero” on Google hit a record high in February as BTC slid toward $60,000 after hitting a peak in October. In the rest of the world, searches for the term peaked in August, suggesting fear is concentrated in the U.S. rather than worldwide. 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