The First GENIUS Act ETF Is Here – And It’s Built for Stablecoins

ProShares has launched the ProShares GENIUS Money Market ETF (ticker IQMM), the first exchange-traded fund explicitly designed to hold compliant reserves for stablecoin issuers under the GENIUS Act. The ETF invests in short-term U.S. government securities that satisfy the liquidity and reserve requirements mandated by the legislation.

This provides both institutional and individual investors a regulated, transparent way to manage high-quality liquid assets in compliance with stablecoin reserve standards.

Moreover, it positions IQMM as a foundational building block in the emerging regulated stablecoin ecosystem.

A Money Market ETF Built for Stablecoin Reserves

The ProShares GENIUS Money Market ETF is structured to invest exclusively in short-term U.S. Treasuries and similar government securities. Offering principal preservation and liquidity while conforming to the reserve definitions under the GENIUS Act.

Additionally, the fund is a “conservative cash management solution” designed for both traditional investors and stablecoin issuers.

Indeed, for those who must legally back every dollar of payment stablecoins with compliant reserve assets.

The ETF seeks to combine ETF-style trading and transparency with the stability traditionally associated with money market instruments.

Unlike typical money market funds, IQMM calculates NAV based on the market value of its underlying investments. Therefore, it allows its share price to reflect real-time portfolio valuation within an ETF framework.

ProShares CEO Michael Sapir said:

“The fund offers a more conservative approach to cash management than is required by standard money market rules, with all the known benefits and convenience of an ETF. We believe that IQMM will be an attractive cash management alternative for institutional investors, including stablecoin treasuries, as well as financial professionals and individual investors.”

What IQMM Means for Stablecoins

The launch of IQMM comes as stablecoin regulation gains clarity in the United States. Under the GENIUS Act, reserve assets must be held in highly liquid and low-risk instruments such as U.S. Treasuries.

Furthermore, an ETF like IQMM directly addresses that need for compliant reserve management.

For stablecoin issuers, IQMM can serve as a systematic reserve vehicle that adheres to statutory liquidity thresholds. Doing so while offering the advantages of an ETF structure.

However, the fund’s catalyst extends beyond stablecoin treasuries. Indeed, institutional investors and cash-rich corporates may use the ETF as an alternative to traditional money market funds.

Similarly, they could use the ETF on bank deposits for managing short-term liquidity as well.

In general, products like IQMM may accelerate the acceptance and of regulated stablecoin issuance by creating compliant infrastructure for backing digital dollar supply.

As the market evolves, vehicles that blend regulatory alignment with market-driven pricing and liquidity will likely grow in relevance.

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