Isabelle Lee

Tue, Jun 10, 2025, 8:14 AM4 min read

(Bloomberg) -- Wall Street’s ETF machine kicked into high gear just hours after Circle Internet Group Inc. went public, riding the frenzied initial public offering of the stablecoin giant as crypto technologies enter mainstream finance.

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At least three issuers rushed to file related exchange-traded funds following Circle’s white-hot Thursday debut. The firm — issuer of USDC, the second-largest stablecoin — saw its shares triple shortly after trading began, reviving animal spirits across an IPO-starved market.

Filings for the Bitwise CRCL Option Income Strategy ETF, ProShares Ultra CRCL ETF and T-Rex 2x Long CRCL Daily Target ETF landed with the US Securities and Exchange Commission Friday and Monday. REX Financial’s registration replaced an earlier ETF prospectus, effectively shortening the timeline for a potential approval.

Bitwise Asset Management Inc.’s ETF seeks to employ a covered call strategy — which enhances the income of the underlying assets — while the versions from ProShares Advisors LLC and REX Financial offer amplified bets on the stock’s performance by using derivatives to deliver two times its daily performance.

With risk sentiment rekindled, funds tied to speculative assets — including leveraged or inverse bets — are increasingly popular. The rapid-fire pace at which ETF product teams are moving to cash in on the momentum of single stocks exemplifies the intense competition in the $11 trillion ETF arena in the US which has been flooded with more than 4,200 products. Of those, nearly 80 funds track digital-assets in some form, data compiled by Bloomberg show.

“It’s an alignment of the stars,” said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. “It’s a crypto company, so that’s high demand, it’s leveraged and it’s a market hungry for IPOs.”

Shares of the New York-based firm have soared more than 270% across their first three trading sessions, marking the most high-profile crypto equity debut since Coinbase Global Inc.’s direct listing in 2021. Its $1.1 billion IPO lands amid renewed bullishness for digital assets — fueled in part by a regulatory sea change under President Donald Trump, whose administration has signaled a dramatically friendlier stance toward crypto compared to his predecessor.