Crypto: Proshares Genius Etf's $17b Debut Boosts Case For Tokenized Money...

IQMM's historic first-day launch underscores how traditional cash funds are adapting to compete in a stablecoin-driven landscape following the passage of the GENIUS Act.

ProShares’ record-breaking debut of its money market exchange-traded fund (ETF) last week underscores the enormous demand for cash-management products at a time when the asset class is increasingly being tokenized — and, as industry proponents argue, the shift could help funds remain competitive amid increasing US stablecoin adoption.

Money market funds invest in short-term, high-quality debt instruments such as US Treasury bills, repurchase agreements and commercial paper. They are designed to preserve capital while offering modest yield and daily liquidity, making them a popular cash-management vehicle for investors.

That backdrop makes the launch of the ProShares Genius Money Market ETF (IQMM) particularly notable. The actively managed fund, which primarily holds short-duration government securities, generated $17 billion in first-day trading volume on Thursday, an unprecedented figure for a newly launched ETF.

Bloomberg ETF analyst Eric Balchunas documented the surge, noting that IQMM’s debut dwarfed other high-profile launches. BlackRock’s iShares Bitcoin Trust (IBIT) recorded roughly $1 billion in first-day volume, while a BlackRock ESG-focused ETF seeded by pension investors saw about $2 billion.

Although it later emerged that much of IQMM’s activity stemmed from internal allocations, with ProShares shifting cash from its existing funds into IQMM for treasury management purposes, the launch nonetheless highlights the scale and strategic importance of money market vehicles.

Even if the flows weren’t fully organic, the move signals the importance of money market funds in modern portfolio construction.

Related: Tokenized money market funds surge to $9B; BIS warns of new risks

The surge also comes as tokenized money market funds gain traction on blockchain rails, where they are increasingly positioned as yield-bearing alternatives to traditional stablecoins.

As dollar-pegged stablecoins expand across payments and decentralized finance, tokenized money market funds are being marketed as a compliant, interest-generating complement within the same ecosystem.

Source: CoinTelegraph