ETF Issuers Race to Launch Circle Stock Funds

Two prominent ETF issuers are in a race to launch funds that track the remarkable rise of Circle’s newly public stock. Bitwise and ProShares both submitted applications with the U.S. Securities and Exchange Commission (SEC) to introduce exchange-traded funds (ETFs) linked to Circle (CRCL).

Both funds offer distinct investment strategies for investors looking to capitalize on Circle’s surge, which has garnered significant attention since its IPO. The stock has seen a nearly fourfold increase from its initial offering price of $31.

ProShares, known for its leveraged ETFs, has filed to create the ProShares Ultra CRCL ETF. This fund is designed to provide twice the daily return of CRCL stock, making it a popular choice for short-term trades. However, it also carries elevated risk due to its compounding effects over multiple days.

Bitwise, on the other hand, is focusing on an income strategy. Its proposed Bitwise CRCL Option Income Strategy ETF would employ a covered call strategy, involving holding CRCL shares while regularly selling call options against them. This approach generates cash premiums that could help smooth returns, especially if the stock’s rise cools off. This type of fund typically appeals to investors seeking 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 key player in the stablecoin market, has attracted interest from both traditional finance and crypto investors. If the SEC approves these ETFs, they could represent another step in the integration of crypto-linked equities with mainstream investing strategies.