Two prominent ETF issuers are competing to bring funds to market to track the explosive rise of Circle’s new public stocks.
Drill bits and proshares Friday each submission The Securities and Exchange Commission (SEC) application initiates an exchange-traded fund (ETF) bound to Circle (CRCL).
Both funds will provide investors with different ways to play the Circle surge, a mind since the IPO in the second half of last week. Today, another 9% increase in stocks amid turbulent actions, stocks almost tripled from their $31 issue price.
Proshares is the main name in a leveraged ETF, and has been requested to create ProShares Ultra CRCL ETF. The fund is designed to provide CRCL stocks with double the daily return. Leveraged ETFs are popular in short-term trading, but they present higher risks due to the compounding effects of multiple days.
Bitwise, on the other hand, is taking an income-centric route. It proposes Bitwise CRCL Option Income Strategy ETF A covered call strategy will be adopted. This involves holding CRCL stock while regularly selling phone options to them, which can result in cash premiums that can help get smooth returns, especially if the stock rises and cools down. Such funds usually attract investors seeking yields rather than high octane growth.
Neither one of the stocks was disclosed. The proposed effective date for both products is August 20, although the SEC approval schedule may vary.
Circle is already a central player in the Stablecoin market, which has attracted the attention of traditional finance and crypto investors. If the SEC signs these ETFs, they can mark another step in the integration of cryptocurrencies with mainstream investment strategies.
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