Two new single-stock exchange-traded funds (ETFs) have filed to launch in order to capitalize on the explosive debut of Circle Internet Group (CRCL), which has surged 266% since its IPO last Thursday and now trades at $113 per share.
Proshares and Bitwise Capitalize on CRCL’s Market Frenzy With New Funds
Proshares and Bitwise are introducing specialized funds to cater to different investor appetites for risk and reward. The Proshares Ultra CRCL ETF seeks to deliver 2x the daily performance of CRCL’s stock, using derivatives like swaps to amplify returns—and losses. This leveraged approach is designed for short-term traders, as compounding effects can significantly deviate from the 2x target over longer periods.
Meanwhile, the Bitwise CRCL Option Income Strategy ETF employs a covered call strategy, selling call options on CRCL shares to generate income while capping upside potential. Covered calls are a conservative options strategy where investors sell call options against owned stock, collecting premiums in exchange for agreeing to sell shares at a set price if the stock rises beyond that level.
CRCL’s volatility makes it a prime candidate for these strategies. While it’s $113 today, CRCL tapped an all-time high of $138.57. The stock’s wild swings—driven by its ties to stablecoin issuer Circle and the broader crypto market—could appeal to both aggressive traders and income seekers.
Proshares’ filing highlights risks, including the potential for total loss in leveraged positions if CRCL drops 50% intraday. Bitwise’s fund, by contrast, aims to mitigate downside through options income but may underperform in a sustained rally. As single-stock ETFs associated with crypto gain traction, these launches highlight Wall Street’s rush to monetize CRCL’s momentum.
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Circle’s Meteoric Rise Spurs CRCL ETFs From Proshares and Bitwise
Two new single-stock exchange-traded funds (ETFs) have filed to launch in order to capitalize on the explosive debut of Circle Internet Group (CRCL), which has surged 266% since its IPO last Thursday and now trades at $113 per share.
Proshares and Bitwise Capitalize on CRCL’s Market Frenzy With New Funds
Proshares and Bitwise are introducing specialized funds to cater to different investor appetites for risk and reward. The Proshares Ultra CRCL ETF seeks to deliver 2x the daily performance of CRCL’s stock, using derivatives like swaps to amplify returns—and losses. This leveraged approach is designed for short-term traders, as compounding effects can significantly deviate from the 2x target over longer periods.
Meanwhile, the Bitwise CRCL Option Income Strategy ETF employs a covered call strategy, selling call options on CRCL shares to generate income while capping upside potential. Covered calls are a conservative options strategy where investors sell call options against owned stock, collecting premiums in exchange for agreeing to sell shares at a set price if the stock rises beyond that level.
CRCL’s volatility makes it a prime candidate for these strategies. While it’s $113 today, CRCL tapped an all-time high of $138.57. The stock’s wild swings—driven by its ties to stablecoin issuer Circle and the broader crypto market—could appeal to both aggressive traders and income seekers.
Proshares’ filing highlights risks, including the potential for total loss in leveraged positions if CRCL drops 50% intraday. Bitwise’s fund, by contrast, aims to mitigate downside through options income but may underperform in a sustained rally. As single-stock ETFs associated with crypto gain traction, these launches highlight Wall Street’s rush to monetize CRCL’s momentum.