Bitwise and ProShares submitted a proposal for an ETF linked to the stock of Circle on June 6.
ProShares' fund aims to provide twice the daily performance of Circle's stock.
Bitwise's fund employs a covered call strategy to generate income from holding Circle shares.
Two major ETF issuers are competing to launch a fund that tracks the shares of Circle, which have surged since going public recently.
Bitwise and ProShares submitted an application to the U.S. Securities and Exchange Commission (SEC) on June 6, aiming to launch an ETF linked to Circle Stock (CRCL).
The funds from both companies offer a mechanism for investors to take advantage of the surge in Circle stock, which has been attracting attention since last week's initial public offering (IPO), in different ways.
On the 9th, Circle's stock rose another 9% amid volatile trading, and the stock price has skyrocketed to nearly four times its IPO price of $31.
The major player in leveraged ETFs, ProShares, has filed for the launch of the ProShares Ultra CRCL ETF.
This fund is designed to provide double the daily return of Circle's stock. Leveraged ETFs are popular for short-term trading, but it is important to note that the risk can increase significantly over multiple days.
On the other hand, Bitwise is adopting a more income-focused strategy. The company's proposed Bitwise CRCL Option Income Strategy ETF is set to employ a covered call strategy.
This is a method of holding circle stocks while periodically selling their call options, generating cash premiums and potentially helping to stabilize earnings, especially when the rise in stock prices slows down. Such funds are attractive to investors who prioritize yield rather than rapid and vigorous growth.
Both funds have not yet disclosed their ticker symbols. The launch date for both products is proposed to be August 20, but the SEC approval schedule may vary.
Circle is already a core player in the stablecoin market, attracting attention from both traditional finance and cryptocurrency investors. If the SEC approves these ETFs, it could represent a new step in the fusion of cryptocurrency-related stocks and mainstream investment strategies.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Strong Circle stock, with two ETFs already under application | CoinDesk JAPAN
Two major ETF issuers are competing to launch a fund that tracks the shares of Circle, which have surged since going public recently.
Bitwise and ProShares submitted an application to the U.S. Securities and Exchange Commission (SEC) on June 6, aiming to launch an ETF linked to Circle Stock (CRCL).
The funds from both companies offer a mechanism for investors to take advantage of the surge in Circle stock, which has been attracting attention since last week's initial public offering (IPO), in different ways.
On the 9th, Circle's stock rose another 9% amid volatile trading, and the stock price has skyrocketed to nearly four times its IPO price of $31.
The major player in leveraged ETFs, ProShares, has filed for the launch of the ProShares Ultra CRCL ETF.
This fund is designed to provide double the daily return of Circle's stock. Leveraged ETFs are popular for short-term trading, but it is important to note that the risk can increase significantly over multiple days.
On the other hand, Bitwise is adopting a more income-focused strategy. The company's proposed Bitwise CRCL Option Income Strategy ETF is set to employ a covered call strategy.
This is a method of holding circle stocks while periodically selling their call options, generating cash premiums and potentially helping to stabilize earnings, especially when the rise in stock prices slows down. Such funds are attractive to investors who prioritize yield rather than rapid and vigorous growth.
Both funds have not yet disclosed their ticker symbols. The launch date for both products is proposed to be August 20, but the SEC approval schedule may vary.
Circle is already a core player in the stablecoin market, attracting attention from both traditional finance and cryptocurrency investors. If the SEC approves these ETFs, it could represent a new step in the fusion of cryptocurrency-related stocks and mainstream investment strategies.