TL;DR:
- ProShares launched the IQMM, the primary cash market ETF designed as a reserve automobile for stablecoin issuers underneath the GENIUS Act.
- The fund invests 100% of its property in short-term U.S. Treasury securities with maturities of as much as 93 days.
- Treasury Secretary Scott Bessent estimates the regulated stablecoin market may attain $3 trillion by 2030.
ProShares launched the ProShares GENIUS Cash Market ETF, recognized underneath the ticker IQMM, making it the primary exchange-traded fund structured particularly as a reserve automobile for stablecoin issuers working underneath the GENIUS Act. The agency manages greater than $95 billion in property.
The GENIUS Act, signed into legislation in July 2025 underneath President Donald Trump, established the primary complete federal framework for fee stablecoins in the USA. The legislation requires that each greenback of stablecoins in circulation be backed by an equal greenback in high-quality liquid property, resembling money or short-term Treasury securities. IQMM invests 100% of its property in devices that meet that commonplace: Treasury payments, Treasury notes, and in a single day repurchase agreements, with most maturities of 93 days in accordance with its prospectus.
A Strict Compliance-First Strategy
The fund is organized underneath Rule 2a-7, which governs authorities cash market funds, although it differs from conventional merchandise in a single key respect: reasonably than sustaining a hard and fast web asset worth of $1.00, ProShares makes use of a market-based NAV calculated from the underlying securities. That construction goals to supply higher transparency, a crucial requirement for stablecoin issuers obligated to submit correct reserve certifications on a month-to-month foundation.
Michael Sapir, CEO of ProShares, famous that the fund presents a extra conservative method to liquidity administration than conventional cash market requirements require, throughout the format of an ETF. “Historical past exhibits that traders gravitate towards autos that provide transparency, effectivity, and liquidity,” he mentioned.
ProShares Will Capitalize on Stablecoin Market Progress
The ETF launch responds to the success of stablecoins. The mixed market capitalization of USDT and USDC surpassed $250 billion and stablecoin transactions reached a file $33 trillion in 2025. Towards that backdrop, Treasury Secretary Scott Bessent tasks the market may attain $3 trillion by 2030, which might significantly increase demand for regulated reserve infrastructure.
ProShares distributes revenue weekly and costs an expense ratio of 0.15%. Its construction permits stablecoin issuers to delegate the administration of their reserves to a regulated automobile already designed for that function, reasonably than managing direct Treasury portfolios.
