ProShares has launched the ProShares GENIUS Money Market ETF (ticker: IQMM), marking the first exchange-traded fund specifically designed to serve as a reserve vehicle for stablecoin issuers operating under the federal GENIUS Act framework. The fund, launched on February 19, 2026, invests 100% of its assets in short-term U.S. Treasury securities, including Treasury bills, notes, and overnight repurchase agreements, with maximum maturities of 93 days.
The GENIUS Act, signed into law in July 2025 under President Donald Trump, established the first comprehensive federal regulatory framework for payment stablecoins in the United States. A core requirement mandates that every dollar of stablecoins in circulation be backed by an equivalent dollar in high-quality liquid assets like cash or short-term Treasuries. IQMM is structured to meet this exact standard.
ProShares, a firm managing over $95 billion in assets, designed IQMM with a strict compliance-first approach. While organized under Rule 2a-7 governing government money market funds, it differs by using a market-based Net Asset Value (NAV) calculated from the underlying securities instead of maintaining a fixed $1.00 NAV. CEO Michael Sapir stated this structure aims to provide greater transparency, a critical need for stablecoin issuers who must submit accurate monthly reserve certifications. Sapir emphasized the fund offers "a more conservative approach to cash management than is required by standard money market rules."
The launch capitalizes on the explosive growth of the stablecoin sector. The combined market cap of USDT and USDC surpassed $250 billion, with stablecoin transactions hitting a record $33 trillion in 2025. U.S. Treasury Secretary Scott Bessent projects the regulated stablecoin market could reach $3 trillion by 2030, signaling massive future demand for compliant reserve infrastructure like IQMM.
The ETF distributes income weekly and charges an expense ratio of 0.15%. Its structure allows stablecoin issuers to delegate reserve management to a regulated, purpose-built vehicle rather than managing direct Treasury portfolios.
In a related development, the news also highlights the Trump family's involvement in the stablecoin space through World Liberty Financial, which is marketing a dollar-pegged cryptocurrency called USD1. Don and Eric Trump, promoting the token as "The Dollar. Upgraded," framed their crypto venture as a response to being "cancelled" by traditional banks after the January 6, 2021, Capitol riot. They criticized the traditional banking system as inefficient and portrayed their stablecoin as a means to "preserve dollar hegemony" and modernize finance.
