At least three companies have applied for Exchange-Traded Funds (ETFs) linked to Circle Internet Group (CRCL), shortly after the company’s initial public offering (IPO) on June 5.
These submissions were made to the Securities and Exchange Commission (SEC) on June 6 and June 9, as reported by Bloomberg on June 10. The filings include Bitwise’s CRCL options income strategy ETFs, and Rex Financial has replaced its earlier prospectus with the T-Rex 2x Long CRCL Daily Target ETF.
The interest in these ETFs seems to be driven by Circle’s stock performance, which unexpectedly tripled on the IPO day. It appears that investors are eager to engage with funds linked to speculative assets. Currently, about 80 ETFs track some aspect of digital assets.
“It’s like star alignment,” noted Athanasios Psarofagis, an ETF analyst at Bloomberg Intelligence. He remarked that the buzz surrounding Circle is significant, especially given its status as a crypto company in an IPO-hungry market.
When Circle began trading on the New York Stock Exchange (NYSE) under the ticker “CRCL,” its share price surged from the initial $31 to close at $83.23, far exceeding expectations.
Jeremy Allaire, Co-Founder and CEO of Circle, stated, “Becoming a public company is a crucial milestone. The world is ready for a shift to an Internet-based financial system,” reflecting on the IPO.
Circle’s debut suggests that investors are eager to support advancements in tech-driven financial transactions. Recent funding rounds have also highlighted various sectors, from infrastructure to B2B services. Circle’s venture arm participated in a Series A funding round for Conduit’s cross-border payment platform, which focuses on Stablecoins and raised $36 million.
Additionally, there have been reports that JPMorgan plans to use Spot Bitcoin to back its clients’ ETFs, indicating a growing acceptance of cryptocurrency within mainstream finance.
