The ProShares GENIUS Money Market ETF (IQMM), a fund built for issuers under the U.S. stablecoin law, launched with a staggering $17 billion in first-day trading volume. This shattered records, dwarfing the debut of major Bitcoin ETFs. Separately, a new SEC guideline applying a 2% “haircut” to payment stablecoins was hailed by industry leaders as a significant boost for adoption in traditional capital markets.
A new money market fund targeting stablecoin issuers regulated under the U.S. GENIUS Act has set a historic record for debut trading volume. ProShares GENIUS Money Market ETF (IQMM) saw an unprecedented $17 billion in day-one trading, according to Bloomberg ETF analyst Eric Balchunas.
This volume was eight times the previous record and far exceeded the first-day totals of other high-profile ETFs. Balchunas noted the massive figure would register as official fund assets, stating, “Insane: That $17B is going to show up as flows/assets tonight.”
ETF expert Nate Geraci speculated the influx could stem from a deal with a major U.S. stablecoin issuer like Circle. However, Morningstar’s Ben Johnson clarified the product was initially funded by other ProShares funds for cash management purposes.
The fund is designed to serve as a permitted reserve asset for stablecoins under the new law. This structure aims to provide issuers with liquidity management tools to handle mass redemptions without triggering financial instability.
In a parallel development, the stablecoin sector received a regulatory adjustment from the SEC. The regulator issued a guideline applying a 2% “haircut” to payment stablecoins, aligning their treatment with money market funds.
Previously, stablecoins held a 100% haircut, offering zero capital benefit for holders. The change allows financial institutions to treat stablecoin holdings as having tangible capital value, potentially increasing trading and lending capacity.
Circle CEO Jeremy Allaire hailed the regulatory shift as a significant advancement. “This is a big win for USDC adoption in capital markets. Great progress,” Allaire stated.
