ProShares launches first stablecoin-ready money market ETF under GENIUS Act

ProShares has introduced the ProShares GENIUS Money Market ETF (NYSE Arca: IQMM), which is the first money market ETF designed to hold assets qualifying as reserves for dollar-backed stablecoins under U.S. law. The ETF is specifically structured to comply with the GENIUS Act, enacted last July, which mandates that stablecoin issuers back tokens 1:1 with safe, liquid assets like U.S. Treasury bills. The fund adheres to the law's restriction by investing only in cash and short-dated U.S. government securities with maturities of 93 days or less, aiming to ensure issuers can meet daily redemption requests without forced sales of longer-dated bonds during stress. This launch occurs while the stablecoin market is valued just under $300 billion, with projections from officials like Treasury Secretary Scott Bessent suggesting the market could grow to $2 or $3 trillion by 2028 or 2030, respectively, driven by institutional adoption.

(Source：The Block)