ProShares’ surprise market splash—and a fresh SEC tweak—could accelerate stablecoin use in U.S. capital markets. What happened - ProShares’ new GENIUS Money Market ETF (NYSE: IQMM) posted an eye-popping $17 billion in debut trading volume — a record for an ETF’s first day. By comparison, BlackRock’s iShares Bitcoin ETF (IBIT) did about $1 billion on day one, and BlackRock’s ESG ETF did $2 billion. - Bloomberg ETF analyst Eric Balchunas called the result “insane” and said the $17B will show up as assets/flows immediately, admitting he’d been wrong about the ETF’s reception. Who funded it - Early speculation from ETF experts (including Nate Geraci) suggested ProShares might have partnered with a major U.S.-based stablecoin issuer—Circle was named as a likely candidate. But Ben Johnson of Morningstar clarified the debut volume came from other ProShares funds moving cash into IQMM to simplify intra-firm cash management, not from a third-party stablecoin issuer. Why it matters for stablecoins - IQMM is explicitly designed as a money market vehicle aligned with the GENIUS Act’s framework for stablecoin reserves. Under that law, issuers can hold cash, cash equivalents, short-dated U.S. Treasuries or money market funds as reserve assets for payment stablecoins. Those instruments are intended to make redemptions smoother and reduce the risk that mass redemptions ripple into broader banking stress. - A highly liquid, money-market-style ETF like IQMM could be an attractive reserve option for stablecoin issuers seeking easy on/off ramps to fiat — though it remains uncertain whether issuers will actually adopt this specific fund. The SEC haircut change and why it’s consequential - The SEC recently revised its capital treatment for payment stablecoins, cutting the “haircut” from a punitive 100% down to 2%—bringing stablecoins closer to the treatment of money market funds. - Practically: where $100 million in stablecoins was previously treated as $0 for capital purposes, it can now be valued at about $98 million. That change expands the usable capital value of stablecoins, potentially increasing trading inventory, lending capacity, and overall market activity involving these tokens. - Jeremy Allaire, CEO of Circle, called the move “a big win for USDC adoption in capital markets,” highlighting the potential boost to institutional use. Bottom line ProShares’ blockbuster ETF debut and the SEC’s haircut adjustment together paint a picture of improved plumbing for stablecoins in U.S. markets: more predictable, liquid reserve options and better capital recognition. Whether that will translate into broad issuer adoption of funds like IQMM is still unclear, but the regulatory and market developments make U.S. stablecoins more operationally viable for capital markets participants. Disclaimer: AMBCrypto’s content is informational and not investment advice. Cryptocurrency trading carries high risk; do your own research before making investment decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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