ProShares' MM ETF Jumps to $17 Bil.
The Serrari Group writes, "ProShares' $17 Billion Debut Signals the Next Battle in Cash: Money Market ETFs, Stablecoins, and the Tokenization Race." The piece explains, "ProShares' record-breaking launch of its Genius Money Market ETF (IQMM) has sent a powerful signal across Wall Street: the competition for cash is intensifying -- and it is no longer confined to traditional asset managers. The actively managed fund, which primarily holds short-duration U.S. government securities, generated approximately $17 billion in first-day trading volume -- an unprecedented figure for a newly launched exchange-traded fund. Bloomberg ETF analyst Eric Balchunas highlighted the magnitude of the debut, noting that IQMM's first-day volume dwarfed other high-profile ETF launches. By comparison, BlackRock's iShares Bitcoin Trust (IBIT) saw roughly $1 billion in first-day trading, while a BlackRock ESG-focused ETF seeded by pension investors recorded around $2 billion." The piece says, "Although ProShares confirmed that much of IQMM's initial activity reflected internal reallocations -- shifting cash from existing funds into the new vehicle for treasury management purposes -- the launch still carries structural significance. It underscores how issuers are increasingly using ETF wrappers to optimize liquidity management and operational efficiency.... The stablecoin industry is undergoing regulatory maturation in the United States, particularly under the evolving GENIUS Act framework. As compliance standards solidify, U.S.-based stablecoin issuers will require transparent, liquid, high-quality reserve assets -- and money market ETFs could emerge as a strategic reserve solution." It adds, "The convergence between traditional money market products and tokenized cash instruments is no longer theoretical. It is becoming operational." For more, see Crane Data's Feb. 23 News, "ProShares Genius Money Market ETF Goes Live; NY Fed on Stablecoins."
