SS #77 - ProShares Stablecoin ETF Hits $17B Day One

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Good morning.

A stablecoin focused ETF just had one of the biggest debuts in ETF history. ProShares’ GENIUS Money Market ETF pulled in $17B in first day trading, a number that caught even seasoned ETF analysts off guard. The strong start shows real demand for regulated, Treasury backed products tied to stablecoin infrastructure as the GENIUS framework starts taking shape in markets.

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In Today's Edition:

• Headline: ProShares Stablecoin ETF Hits $17B Day One

• Quick Bites: SEC Brokers’ Capital Stablecoin Requirements

• Yield of the Week: 13.95% APY on Abyss

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HEADLINE

State of play: ProShares’ GENIUS Money Market ETF, IQMM, recorded a record $17B in first day trading volume. The fund holds assets that meet US stablecoin reserve requirements under the GENIUS Act, including highly liquid US Treasury bills.

• The launch far surpassed previous ETF debuts, including BlackRock’s IBIT at $1B on day one.

• Analysts suggest institutional capital allocation strategies may have driven flows, potentially involving a major US stablecoin issuer.

• The debut highlights deeper integration between stablecoin infrastructure and traditional money market products as stablecoins approach $300B in supply.

What’s Next: If flows remain stable, expect more stablecoin aligned ETFs and reserve focused products to launch under the GENIUS framework.

Why it Matters: This tightens the link between stablecoins and US Treasuries. It effectively brings stablecoin reserve mechanics into public markets and institutional portfolios.

Our Take: If major players are anchoring flows, stablecoin infrastructure is quietly becoming part of mainstream liquidity management.

QUICK BITES

• Stablecoins could drive $1T in T-bill demand.

• SEC issues guidance on brokers’ capital stablecoin requirements.

• Trump's BoP eyes stablecoin to support digital transactions in Gaza.

• WLFI says USD1 short and social media attack fails as stablecoin briefly dips.

YIELD OF THE WEEK

Avant+ DeFi Yield (bravUSDC): 13.66% APY

• The vault deploys USDC into the Avant ecosystem, mainly via savUSD, while accessing incentivized liquidity pools, borrow and lend arbitrage, and fixed rate opportunities.

• The vault is KYC only and charges 1.5% management and 20% performance fees.

• Administered by Boreal, the strategy manages $3.28M in TVL with a NAV of 1.073738.

Abyss USDC Vault: 13.95% APY

• The vault lets users supply USDC to margin traders and earn borrowing fees, with yields increasing as utilization rises and compounding in real time.

• TVL stands at $1.37M, with 1,374,059.05 USDC deposited and 508K USDC available under the 1,000,000 USDC supply cap structure.

• Returns are variable and depend on margin trading demand, with exposure primarily to smart contract and platform risk.

Main Street Yield (msY): 11.98% APY

• msY deploys capital into short duration CME index box spreads, converting an institutional options funding trade into a USD denominated, onchain yield product.

• The strategy is engineered to be market neutral with near zero delta and gamma, using laddered expiries to keep duration low and smooth returns.

• The vault manages $18.41M in AUM and currently delivers 11.98% APY, with returns driven by CME funding spreads rather than crypto price exposure.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.