ProShares launches a money market ETF serving stablecoin reserves

ProShares has launched the GENIUS Money Market ETF (ticker symbol IQMM), a money market fund designed to hold assets eligible as reserves for USD-pegged stablecoins in accordance with U.S. regulations.

The fund is structured to comply with the requirements of the GENIUS Act, which mandates that stablecoin issuers must back 1:1 with safe, highly liquid assets, primarily U.S. Treasury bills. IQMM invests solely in cash and short-term U.S. government bonds with maturities of up to 93 days, enabling issuers to meet daily redemption needs without having to sell long-term bonds during market volatility.

The stablecoin market currently has a circulating supply of nearly $300 billion, led by Tether (USDT) and Circle (USDC). Many forecasts suggest that the market could grow significantly in the coming years.

U.S. Treasury Secretary Scott Bessent has previously stated that the stablecoin market could surpass $2 trillion by 2028 and reach approximately $3 trillion by 2030. Meanwhile, Citi projects a baseline scenario of around $1.9 trillion and an optimistic scenario of up to $4 trillion by the end of the decade. Standard Chartered forecasts a market size of about $2 trillion and warns that hundreds of billions of dollars could shift from bank deposits to stablecoins.