Circle stock extends rally following T-Rex, ProShares and Bitwise filings for ETFs based on CRCL

Circle (CRCL) jumped 7% on Monday following filings of asset managers T-Rex, ProShares and Bitwise to launch separate exchange-traded funds (ETFs) tracking Circle's CRCL stock, less than a week after it went live on the New York Stock Exchange (NYSE).

Asset managers file for Circle ETF less than a week after public listing

Asset managers T-Rex, ProShares and Bitwise submitted registration statements to the Securities and Exchange Commission (SEC) for ETFs based on stablecoin issuer Circle's CRCL stock — less than a week after its initial public offering, according to Bloomberg ETF Analyst Henry Jim.

T-Rex submitted a registration statement to the SEC on Monday regarding its T-REX 2X Long CRCL Daily Target ETF, providing 200% leveraged exposure to CRCL's daily performance.

"The Fund, under normal circumstances, invests in swap agreements that provide 200% daily exposure to CRCL equal to at least 80% of its net assets (plus any borrowings for investment purposes)," the filing states. "The Fund may also seek to achieve its investment objective by purchasing call options on CRCL or by investing directly in the common stock of CRCL."

The company previously filed for a T-REX 2X LONG SMCI DAILY TARGET ETF, tracking the SMCI index, but converted it into a CRCL ETF filing on Monday. The expected launch date of the ETF is August 11 subject to SEC approval.

ProShares also followed a similar approach with its Ultra CRCL ETF filing, which seeks to track twice the daily performance of the CRCL's stock price. The product will amplify CRCL's gains or losses by 200% before fees and taxes. The filing notes that the Ultra ETF will not intend to achieve double the rate of gains or losses for more than a day of trading.

On the other hand, Bitwise filed a CRCL Options Income Strategy ETF, which would track the stock performance of CRCL using a covered call strategy, according to Henry Jim. With this strategy, Bitwise can hold CRCL shares while regularly selling call options against them to generate premium income.

The filings come just days after CRCL went live on the NYSE on Thursday following an initial public offering (IPO) that went at $31 per share, above market expectations of $27-$28 per share.

Since its debut, CRCL has risen nearly four times its IPO price, trading at $115 and up 7% at the close of the market on Monday. After trading hours, it extended its gains by 2% to $117.

Circle's strong performance comes as sponsors of the GENIUS bill are aiming to bring the final draft before the Senate for a floor vote in the coming days. According to Standard Chartered's Geoffrey Kendrick, if the GENIUS bill is passed, it could boost the stablecoin market from just above $260 billion to $2 trillion.