ProShares Launches First Money Market ETF Tailored for Stablecoin Reserves Under New US Law

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ProShares brought a new money market exchange-traded fund to market on Thursday, structured specifically to hold the types of assets that qualify as reserves for dollar-backed stablecoins under federal legislation.

The fund, called the ProShares GENIUS Money Market ETF, began trading on NYSE Arca under the ticker IQMM. It is designed to comply with the requirements of the GENIUS Act, a law enacted last July that mandates stablecoin issuers back their tokens on a one-to-one basis with safe and highly liquid assets.

Under the statute, eligible reserve assets are restricted to instruments such as short-term US Treasury bills with maturities of 93 days or less. IQMM adheres to this framework by investing exclusively in cash and short-dated US government securities that fall within the law’s specific criteria for reserves.

By keeping maturities capped at roughly three months, the fund aims to provide stablecoin issuers with the liquidity needed to handle daily redemption requests, even during periods of market turbulence when selling longer-dated bonds could result in losses.