Circle Internet Group (CRCL) shares tumbled 5.66% on Wednesday, closing at $152.55, coinciding with ProShares' debut of the Ultra CRCL ETF (CRCA) – the first leveraged ETF offering 2x daily exposure to Circle's stock performance. The new fund, trading under NYSE ticker CRCA, targets short-term traders seeking amplified returns on CRCL movements without margin accounts.
ProShares announced CRCA amid growing institutional interest in digital assets, positioning it as a tool to capitalize on Circle's momentum following its June IPO, which saw the company's valuation surge nearly fivefold. However, the ETF's daily reset mechanism makes it unsuitable for long-term holding due to volatility drag risks. Circle's market position remains strengthened by $64.5 billion USDC stablecoin circulation and recent regulatory clarity from July's GENIUS Act.
The launch expands ProShares' crypto-linked ETF lineup, joining products like BITO (Bitcoin Strategy ETF). Circle concurrently advances blockchain infrastructure projects, including its Cross-Chain Transfer Protocol and Circle Gateway liquidity service, cementing its role in blockchain payments across 185+ countries.