ProShares and Bitwise are competing to launch CRCL ETFs, aiming to make their debut in August against the backdrop of soaring stock prices
On June 6th, ProShares Trust and Bitwise each submitted the preliminary prospectuses of exchange-traded funds (ETFs) aimed at tracking Circle’s CRCL stocks to the U.S. Securities and Exchange Commission (SEC). The two are competing to launch related ETFs. It is planned to come into effect on August 20th.
The Ultra CRCL ETF launched by ProShares is a 2x leveraged product, aiming to double the daily increase of CRCL through swaps and other derivatives. Bitwise’s CRCL option yield strategy ETF, on the other hand, plans to hold stocks and sell call options to generate distributable cash, which is a “covered call option” strategy. At present, neither of the two applications lists the stock code or the fee table.
The stock performance of Circle Company is strong. On June 5th, its initial public offering (IPO) was priced at $31, with an opening price of $69. Within 30 minutes, it soared to $103.75, and the closing price on that day was $83.23. Since then, the stock price has continued to rise and reached a record high of $138.57 on June 9th. As of the time of publication, the trading price was $117.49, which has pushed the company’s implied fully diluted value to over $30 billion. The market capitalization of the US dollar stablecoin USDC issued by Circle is 61 billion US dollars, and the market capitalization of CRCL is about half of it.
If the SEC announces these applications to take effect according to the default August schedule, these products may start trading at the end of the third quarter. Prior to this, the issuer must submit the final prospectus, obtain listing approval from the exchange, and obtain exemption relief for the use of derivatives.
The applications of ProShares and Bitwise this time highlight the immediate demand for Circle’s stocks in the market and also mark that traditional asset management companies are linking public market instruments with businesses based on the stablecoin economy. As Circle’s share price continues to soar, the launch of these two ETFs may offer investors new investment options and further promote the integration of cryptocurrencies and traditional finance.
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