ProShares Trust and Bitwise submitted a preliminary prospectus to the U.S. Securities and Exchange Commission (SEC) on June 6, planning to issue an exchange-traded fund (ETF) to track Circle CRCL stocks $ETH
The ProShares Ultra CRCL ETF is a two-times leveraged product designed to achieve double the daily volatility of CRCL stocks through the use of swaps and other derivatives, as described in its N-1A registration statement. Bitwise's proposed CRCL ETF options income strategy includes holding stocks and selling call options to generate distributable cash, equivalent to a 'covered call option.' The prospectus does not include a timeline or fee schedule, and both companies plan to list on August 20 under rule 485(a)(2). Each issuer must submit a final prospectus, obtain exchange listing approval, and receive a derivatives use exemption before listing. If the U.S. Securities and Exchange Commission announces an effective date according to the assumed August timeline, these products may begin trading by the end of the third quarter. In the explosive growth of submitted filings, as of the time of writing, Circle's equity trading price is $117.49, giving the company a fully diluted valuation of over $30 billion. This value is approximately half of the $61 billion market capitalization of the dollar-pegged stablecoin USDC it relies on. Additionally, CRCL reached an all-time high of $138.57 on June 9 before pulling back. On June 5, Circle's initial public offering (IPO) was priced at $31. The opening price was $69, which rose to $103.75 within 30 minutes, and closed at $83.23 on that day. In the following trading days, the stock price rebounded to an all-time high of $123.52 and closed above $100, maintaining that level thereafter. The stock's performance quickly attracted many looking for differentiated investment opportunities tied to native cryptocurrency income sources, even sparking interest from companies considering an initial public offering (IPO). As traditional asset management firms withdraw from companies that rely on stablecoin economies, the dual application for Circle stock highlights the urgent demand for packaged investments in Circle stock. This article mentions: USDC, United States, cryptocurrency, ETF $BTC