Bitwise and ProShares Race to Launch ETFs on Red-Hot Circle (CRCL) Stock

TL;DR:

• Bitwise and ProShares have filed proposals with the SEC to launch ETFs tied to Circle (CRCL).
  
• ProShares’ fund aims to deliver 2x daily returns on CRCL, ideal for short-term leveraged trading.
  
• Bitwise’s ETF uses a covered call strategy to generate income from holding CRCL.
  
• Both ETFs target a launch date of August 20, pending regulatory approval.
  
• The filings highlight the increasing intersection of crypto and traditional finance.
  

Two ETF Giants Set Their Sights on Circle

Following Circle’s (CRCL) explosive debut on public markets, two of the most recognized names in exchange-traded products—Bitwise and ProShares—have swiftly filed for ETFs that will allow broader investor participation in the stablecoin giant’s momentum.

Filed on June 6 with the U.S. Securities and Exchange Commission, both ETF proposals seek to capitalize on Circle’s stock, which has already quadrupled in price from its $31 IPO value. On Monday alone, CRCL jumped 9%, continuing a volatile, high-volume rally that has drawn massive market attention.

Circle ETF Filings Snapshot

ProShares Ultra CRCL: A Volatile Trader’s Dream

ProShares, known for leveraged products like the ProShares UltraPro QQQ, has filed for a 2x daily return ETF tracking CRCL—dubbed the ProShares Ultra CRCL ETF. These types of funds are highly sought after by active traders aiming to exploit short-term price action.

“Leveraged ETFs are effective for directional bets, but carry compounding risk,” noted ETF strategist Todd Rosenbluth.

Due to volatility decay, these ETFs are not generally suited for long-term investors, but during strong rallies, they can yield extraordinary short-term gains.

Bitwise’s Income Strategy: Yield Over Speculation

Meanwhile, Bitwise is focusing on a yield-generating model through the Bitwise CRCL Option Income Strategy ETF. This fund employs a covered call strategy, where CRCL shares are held while call options are sold to generate cash premiums.

“This type of ETF provides passive income potential without betting on price alone,” said Matt Hougan, CIO of Bitwise.

This approach appeals to risk-conscious investors who want exposure to crypto-aligned assets while mitigating volatility through option premiums.

Circle’s Surge Signals a Shift

Circle is best known for issuing USDC, the second-largest stablecoin by market cap, and a core component in DeFi and institutional finance. With its IPO, it now stands alongside Coinbase as one of the few crypto-native companies to go public.

This explosive growth—both in price and attention—has prompted institutional and retail investors to seek regulated access to its equity. ETFs offer exactly that, especially as Circle’s operations span payment infrastructure, fiat onramps, and Web3 interoperability.

“Circle’s IPO represents a realignment of capital—blending crypto liquidity with traditional asset classes,” said James Seyffart of Bloomberg Intelligence.

SEC Approval Timeline: Still a Question Mark

While both filings list August 20 as their proposed effective date, it’s ultimately the SEC that will determine when—and if—these ETFs go live.

Earlier in 2025, the SEC approved Bitcoin spot ETFs after years of hesitation. That move set a precedent that may favor faster consideration of crypto-equity ETFs like those tracking CRCL.

But given that Circle operates in both fintech and crypto, the SEC may require additional scrutiny, especially around volatility disclosures and custody arrangements for covered call positions.

Market Impact: ETFs as a Gateway to Crypto Stocks

The success of CRCL’s IPO and the rapid ETF filings signal a broader market trend—investors want exposure to crypto businesses without necessarily buying tokens. ETFs tied to CRCL may fill that need, particularly for advisors, retirement planners, and regulated funds that avoid direct crypto holdings.

If successful, these ETFs could unlock:

• New capital inflows from retail and institutional markets.
  
• Passive exposure to crypto innovation.
  
• A precedent for future ETFs tied to firms like Anchorage, Chainalysis, or Fireblocks if they go public.
  

Looking Ahead: Who Follows?

With Bitwise and ProShares now in a race to offer the first Circle ETFs, competitors like VanEck, ARK Invest, or Invesco may not be far behind. If volatility continues and demand persists, leveraged, inverse, and sector-specific ETFs tied to crypto stocks could become the next trend.

For now, Bitwise and ProShares are betting that CRCL’s volatility + brand + revenue model are enough to make history—and drive ETF demand deeper into the crypto-financial mainstream.