The highly anticipated Circle IPO has done more than lift the stock of the USDC stablecoin issuer; it’s also reignited Wall Street’s appetite for crypto-related exchange-traded funds (ETFs). Within days of CRCL stock tripling in its public debut, at least three new leveraged ETFs have been filed to capture the momentum.
Circle Internet Financial, the company behind USDC, the world’s second-largest stablecoin, made headlines last Thursday after launching a $1.1 billion Circle IPO. By Monday, shares had surged over 300% in just three trading sessions, making it one of the strongest crypto equity debuts since Coinbase’s direct listing in 2021.
ETF product teams moved quickly to file for exposure to Circle stock. Among the new filings with the U.S. Securities and Exchange Commission:
- Bitwise CRCL Option Income Strategy ETF, which will apply a covered call strategy on CRCL shares.
- ProShares Ultra CRCL ETF is designed to offer 2x daily exposure to CRCL stock using derivatives.
- T-Rex 2x Long CRCL Daily Target ETF, submitted by REX Financial, updating a previous registration to shorten approval timelines.
“It’s an alignment of the stars,” said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. “It’s a crypto company, so that’s high demand, it’s leveraged, and it’s a market hungry for IPOs.”
These single-stock ETFs reflect rising retail demand for quick, high-conviction bets, especially in the crypto and tech sectors. According to Bloomberg data, single-stock ETFs will now represent 16% of all new ETF launches in 2025.
ARKK Backs Circle as Stablecoin Bill Vote Nears
Investor confidence in Circle soared further when Cathie Wood’s ARK Investment Management revealed it had purchased over 3 million shares of CRCL for its flagship ARKK ETF, making Circle one of its top 10 holdings. ARK also bought additional shares for its other ETFs.
That surge in institutional backing comes just ahead of a crucial stablecoin bill vote scheduled for Wednesday in the U.S. Senate. The legislation, which has the support of the crypto industry and former President Trump, could reshape the regulatory landscape for stablecoins like USDC.
Circle’s revenue model sets it apart from traditional crypto platforms. Unlike Coinbase, which depends on trading fees, Circle earns yield from U.S. Treasuries and safe assets backing its token, giving it a more stable, finance-first profile in the public markets.
Volatility Lingers as CRCL Dips
Despite the early surge, CRCL stock fell nearly 10% on Tuesday, marking its first daily decline since the Circle IPO. While volatility is expected with newly listed crypto equities, the dip highlights the sector’s sensitivity to regulation and macro sentiment.
Still, ETF issuers remain optimistic. With over 4,200 ETFs on the market and nearly 80 tracking digital assets, the rush to file crypto-equity products shows no sign of slowing.
“As certain companies IPO, we are seeing ETFs—especially levered ETFs—sprout to take advantage of any tailwinds,” said Mohit Bajaj, director of ETFs at WallachBeth Capital.
Circle’s blockbuster entry could pave the way for more crypto IPOs this year. Gemini, founded by the Winklevoss twins, has filed confidentially, while Blockchain.com is staffing up for a public listing.
With its early performance and upcoming regulatory decisions in focus, Circle may not just be another crypto stock; it could become a barometer for how crypto finance merges with mainstream markets.
Also Read: Bybit Analysis Shows Circle’s IPO Sparks Crypto Listing Boom
