| What to Know: - IQMM aligns with GENIUS Act, holds cash and very short-term Treasuries. - Floating NAV and intraday trading enhance transparency versus traditional stable-NAV money funds. - Analysts foresee $2–$4 trillion stablecoin supply, increasing demand for compliant reserves. |
ProShares launched the IQMM Treasury ETF to align with the GENIUS Act’s reserve rules for stablecoins by limiting assets to cash and very short-term U.S. Treasuries. According to The Block, the fund adheres to the law’s 93-day cap on Treasury holdings, effectively concentrating exposure in front-end bills. The same report notes analysts see stablecoin supply reaching $2–$4 trillion by 2030, underscoring expected demand for compliant reserve tools.
IQMM uses a floating net asset value and trades intraday on exchange, features that differ from traditional government money market funds that aim to maintain a stable NAV; this may enhance price transparency around reserves, according to CoinTelegraph. Those structural choices could help treasury teams align reserve marks with observable market levels while retaining ETF execution flexibility.
The GENIUS Act separates stablecoin payment functions from yield by requiring reserves to sit in cash or short-term U.S. Treasuries, not yield-bearing structures, an editorial perspective highlighted by CoinDesk. In practice, that shifts issuer priorities toward liquidity, auditability, and operational control over reserve instruments instead of yield maximization. Financial media coverage frames the launch as part of Wall Street’s broader move into the digital dollar market, as reported by Bloomberg.
The 93-day limit constrains duration risk by anchoring the portfolio to Treasury bills issued by the U.S. Department of the Treasury with maturities under roughly three months. Portfolio construction will typically favor high-frequency reinvestment and short ladders, supporting rapid conversion to cash and reducing sensitivity to rate moves at the long end.
Liquidity management under this cap relies on the natural roll-down of near-maturity bills and same-day exchange liquidity for ETF shares. A floating NAV allows market pricing to adjust continuously, which may reduce redemption frictions compared with vehicles engineered for constant $1 pricing during rate volatility.
Policy voices see both benefits and trade-offs. In Senate-focused coverage, Senator Bill Hagerty highlighted potential gains for dollar efficiency and Treasury demand, while law professor Arthur Wilmarth cautioned that large-scale reliance on sovereign bills could face strains during stress, as reported by American Banker.
ProShares characterizes the strategy as deliberately cautious. “A more conservative approach to cash management than is required by standard money market rules,” said Michael L. Sapir, CEO, ProShares.
At the time of this writing, WisdomTree, Inc. (WT) traded at 16.44, down 3.15%, based on NYSE/Nasdaq real-time quotes. This neutral backdrop illustrates broader asset-management activity as ETF providers address evolving digital-dollar reserve needs.
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