ETF Firms Rush New Products After Circle's 270% IPO Surge

ETF firms have swiftly moved to capitalize on the surging demand for cryptocurrency-related investments, particularly following the successful IPO of Circle Internet Group Inc. Within hours of Circle's public debut, several ETF issuers submitted filings to the U.S. Securities and Exchange Commission for new products directly linked to Circle's stock.

Circle, known for issuing the USDC token, saw its shares triple in value shortly after trading began, marking a significant event in the otherwise sluggish IPO market. This rapid increase in value opened the floodgates for ETF firms to register new products. By Friday and Monday, Bitwise Asset Management, ProShares Advisors, and REX Financial had all submitted filings for ETFs built around Circle.

Bitwise filed for the CRCL Option Income Strategy ETF, a covered call fund designed to boost yield. ProShares proposed the Ultra CRCL ETF, while REX pushed for the T-Rex 2x Long CRCL Daily Target ETF, which aims to double Circle’s daily price moves using derivatives. REX also updated a previous filing to expedite the approval process.

These filings coincided with Circle's third trading day, during which its stock surged by 270%, making it the biggest crypto equity debut since Coinbase listed in 2021. Circle raised $1.1 billion through the IPO and immediately attracted high-risk traders. Unlike other crypto firms, Circle generates revenue from interest on U.S. Treasuries and other safe assets that back its token, providing a different business model from transaction-fee-driven firms like Coinbase.

The new ETFs are entering the market at a time when single-stock funds are experiencing a significant rise in popularity. In 2025, they account for 16% of all new ETF launches. The funds designed around Circle are among the most aggressive yet, with expected volatility nearly double that of already approved ETFs.

Analysts note that the combination of high demand for crypto, leveraged products, and a market hungry for IPOs has driven these firms to act swiftly. The crypto industry's backing of the stablecoin regulation bill, along with President Donald Trump's administration taking a friendlier stance toward crypto, has further fueled this trend.

Circle currently controls 29% of the stablecoin market through USDC, which is tied to the value of the U.S. dollar. Its revenue model, which involves earning yield on reserves, has drawn institutional attention. One of the first big buyers was Cathie Wood, whose firm ARK Investment Management picked up more than 3 million shares of Circle for its flagship ETF, ARKK, on the day of the IPO. This instantly pushed Circle into ARKK’s top 10 holdings, and ARK also added Circle to its other ETFs.

The IPO also signaled a broader trend, with new crypto firms lining up to follow Circle to the public market. Gemini, the crypto exchange run by Tyler and Cameron Winklevoss, has quietly filed for its own IPO. Blockchain.com has been hiring executives and preparing to go public as well. The ETF industry is closely tracking these developments, with some issuers aiming to create products based on these new IPOs in hopes of replicating Circle's success.