What to know:
- On the fateful day of June 6, Bitwise and ProShares, like two eager suitors, filed their ETF proposals tied to the illustrious Circle (CRCL).
- The ProShares fund, in its ambitious quest, aims to deliver double the daily performance of CRCL shares—because why settle for less when you can gamble with more? 🎲
- Meanwhile, Bitwise, with a more cautious demeanor, employs a covered call strategy to generate income from its CRCL holdings—like a wise old owl in a forest of financial folly.
In a world where fortunes are made and lost in the blink of an eye, two well-known ETF issuers are racing to bring forth funds that track the meteoric rise of Circle’s newly public stock. It is a spectacle worthy of the grandest of tales!
Late on a Friday, as the sun dipped below the horizon, Bitwise and ProShares each submitted their applications to the U.S. Securities and Exchange Commission (SEC), eager to launch exchange-traded funds (ETFs) tied to Circle (CRCL). The anticipation was palpable, like waiting for the next chapter in a gripping novel.
Both funds offer investors a chance to partake in the Circle’s surge, which has turned heads since its IPO late last week. With shares up another 9% today in a whirlwind of volatility, they have nearly quadrupled from their humble $31 offering price. It’s as if the stock market itself has taken a wild ride on a rollercoaster! 🎢
ProShares, a titan in the realm of leveraged ETFs, has filed to create the ProShares Ultra CRCL ETF. This fund is designed to provide twice the daily return of CRCL stock. However, dear reader, beware! Leveraged ETFs are like a double-edged sword, popular for short-term trades but fraught with elevated risk due to their compounding effects over multiple days. One must tread carefully in this treacherous terrain!
On the other hand, Bitwise is taking a more prudent approach, focusing on income. Its proposed Bitwise CRCL Option Income Strategy ETF would employ a covered call strategy, holding CRCL shares while regularly selling call options against them. This generates cash premiums that could help smooth returns, especially if the stock’s rise cools off. A strategy for the wise investor, perhaps? 🦉
As of now, neither fund has disclosed a ticker. The proposed effective date for both products is August 20, though the timelines for SEC approval can be as unpredictable as a cat on a hot tin roof!
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2025-06-09 20:29