ProShares has launched a brand new cash market ETF that connects conventional finance with the burgeoning stablecoin market. The brand new fund, known as IQMM, is designed to adjust to the GENIUS Act of 2025. This lets you maintain property that qualify as reserves for USD-backed stablecoins like USDT. In consequence, the launch has attracted consideration from each crypto buyers and conventional establishments.
Newest: ⚡ ProShares has launched a brand new GENIUS Cash Market ETF that’s compliant with the GENIUS Act and designed to carry property that qualify as USD-backed stablecoin reserves. pic.twitter.com/kN0YkFAM6p
— CoinMarketCap (@CoinMarketCap) February 20, 2026
ProShares launches first GENIUS-compliant ETF
To begin with, ProShares says the IQMM ETF is the primary cash market fund structured in keeping with the principles of the GENIUS Act. Signed in July 2025, this legislation created a transparent federal framework for stablecoins in the US. Due to this fact, stablecoin issuers should meet strict requirements. For instance, tokens have to be backed by high-quality property in accordance with anti-money laundering legal guidelines.
IQMM meets these reserve requirements as a result of it invests in short-term U.S. Treasury securities. In different phrases, property throughout the fund can help USD stablecoins in a compliant method. This construction provides buyers further confidence. On the identical time, it gives a easy and controlled path to digital asset finance.
How ProShares bridges finance and cryptocurrencies
Extra importantly, ProShares helps bridge the hole between Wall Avenue and the crypto market. Historically, cash market funds centered solely on authorities debt and low-risk property. Nevertheless, this ETF connects these protected property to the stablecoin ecosystem.
As stablecoins proceed to develop, the necessity for dependable reserves turns into much more essential. Presently, the market capitalization of stablecoins is over $200 billion. Due to this fact, regulated reserve merchandise could turn out to be important. The ETF might entice banks, treasurers and institutional buyers by providing the yield of compliant property.
Why is regulation essential now?
The GENIUS Act will play an essential position on this change. With out regulation, many establishments can be hesitant to enter the crypto market. Nevertheless, clear guidelines scale back uncertainty. In consequence, firms can construct merchandise with confidence.
Moreover, buyers acquire transparency. They perceive how the property and funds underlying stablecoins are managed. In consequence, belief within the system could enhance over time.
What this implies for the market
General, ProShares is positioning itself on the middle of regulated digital finance. Though it should take time to implement, this ETF has the potential to set a brand new customary. As extra firms comply with this mannequin, stablecoins might turn out to be additional built-in into conventional finance.
Thus far, ProShares has taken an essential first step. And the traces between crypto and conventional markets are more likely to proceed to blur as regulation and innovation advance collectively.
