Stablecoin ‘Regulatory Response’ ETF Surpasses $17 Billion in Inflows on First Day

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The world’s first regulation-compliant stablecoin exchange-traded fund (ETF) launched by ProShares recorded a historic inflow on its first day of trading, marking a new milestone in the integration of digital assets into the traditional financial system.

According to crypto media outlet BeInCrypto on Feb. 22 (local time), the Stablecoin Regulatory GENIUS Money Market ETF (IQMM), introduced by ETF issuer ProShares, surpassed $17 billion in trading volume on its debut day, setting an all-time record. IQMM, which began trading on the New York Stock Exchange Arca (NYSE Arca), is the first financial product designed to comply with the requirements of the U.S. GENIUS Stablecoin Regulatory Act enacted last July.

The successful debut of IQMM demonstrates the strong demand among stablecoin issuers for transparent and regulation-compliant reserve management solutions. The fund primarily invests in short-term U.S. Treasury securities, ensuring both asset safety and liquidity, while providing issuers with an efficient way to manage reserves in compliance with legal requirements. As of Feb. 20, IQMM held approximately $17.213 billion in net assets, underscoring explosive market demand.

Michael L. Sapir, CEO of ProShares, described the achievement as “the culmination of an innovative product built for the evolving digital asset market.” He added, “By adopting stricter and more conservative cash management strategies than traditional money market funds, IQMM will serve as a trusted cash management alternative for both institutional and retail investors.”

Financial experts predict that IQMM will serve as a critical bridge in building trust between digital assets and the traditional financial system. As major asset managers such as BlackRock show interest in stablecoin-based financial products, analysts say ProShares has secured a first-mover advantage by launching a regulation-compliant product ahead of competitors. In particular, real-time settlement and transparent asset valuation mechanisms are seen as compelling incentives for financial institutions operating under regulatory oversight.

With stablecoin issuers shifting large portions of their reserves into IQMM, the center of digital asset fund management is rapidly moving from bank deposits to exchange-traded funds. This transition is expected to enhance transparency within the digital asset ecosystem while widening the gateway for institutional capital inflows. Market participants believe that the stabilization and long-term performance of IQMM could set the standard for a new wave of regulation-based digital asset financial products.

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