Wall Street Bets Big on Circle: Leveraged ETFs Rush In After IPO Boom

TLDR

Circle IPO triggers ETF rush from Bitwise, ProShares, and REX. Bitwise files income-focused ETF tied to Circle stock. ProShares, REX seek 2x leveraged exposure to Circle. ARK Invest buys 3M+ Circle shares for ARKK ETF. Circle gains 270% post-IPO; retail and ETFs pile in.

Circle Internet Group’s stock continues to dominate headlines following its IPO, triggering a fast wave of ETF filings. Asset managers moved quickly to capitalize on market demand as the firm’s shares rallied strongly in early trading. The filings signal rising institutional interest in crypto-adjacent equities as regulatory sentiment shifts in favor of digital finance.

Bitwise Targets Circle with Income-Based ETF Filing

Bitwise Asset Management filed for the Bitwise CRCL Option Income Strategy ETF shortly after Circle’s stock began trading on public markets. This ETF intends to use a covered call strategy to generate income on the volatile equity. Bitwise aims to attract investors seeking crypto exposure while managing risk using options.

The timing aligns with renewed bullishness across digital assets and IPO markets, both benefiting from a change in U.S. political climate. Demand for stablecoin-related investments surged as Circle’s USDC token remains second only to Tether in market share. Consequently, Bitwise plans to leverage Circle’s unique positioning in the crypto-finance space to offer stable income returns.

Investors now favor structured strategies offering controlled exposure to crypto volatility without directly trading tokens. Bitwise’s ETF structure offers that exact opportunity, enabling broader access to Circle’s upside. The firm expects increased retail and institutional inflows once the ETF gains regulatory clearance.

ProShares and REX Push for Leveraged Circle Exposure

ProShares and REX Financial each filed for leveraged ETFs linked to Circle’s stock to serve momentum-focused retail traders. The ProShares Ultra CRCL ETF and T-Rex 2x Long CRCL Daily Target ETF plan to track double the daily return of CRCL. These filings reflect growing appetite for high-conviction, short-term plays in the equity ETF space.

Both firms seek to tap into the rapid growth of single-stock ETFs, which will account for 16% of new ETF launches in 2025. The Circle IPO provided a rare opportunity for issuers to launch high-volatility products backed by strong fundamentals. Moreover, Circle’s connection to stablecoin infrastructure adds legitimacy compared to traditional meme stocks.

REX Financial also updated its ETF filing, replacing a previous version to accelerate approval timelines with the SEC. This move suggests urgency to enter the market before volatility cools. Hence, ETF issuers are racing to attract inflows during Circle’s breakout period.

ARK, Retail Traders Back Circle Despite Volatility

Cathie Wood’s ARK Invest quickly bought over three million shares of Circle for its flagship ARKK ETF post-listing. Circle ranks among the top holdings of the fund, reflecting high institutional conviction. The stock surged more than 270% in its first three trading days, igniting broader investor excitement.

Retail participation has also grown, as traders chase momentum and react to favorable regulatory shifts under the Trump administration. However, Circle’s stock dipped nearly 7% on Tuesday ahead of a critical stablecoin legislation vote. This marks the first daily decline since the firm’s listing.

Circle(CRCL)

Circle’s model, backed by U.S. Treasuries and not dependent on transaction fees, appeals to long-term investors. The company’s leadership in USDC issuance adds strength to its valuation case. ARK’s early position signals confidence in Circle’s business and potential future ETF-driven flows.

 

The post Wall Street Bets Big on Circle: Leveraged ETFs Rush In After IPO Boom appeared first on CoinCentral.