ProShares has launched a new money market ETF that connects traditional finance with the burgeoning stablecoin market. The new fund, called IQMM, is designed to comply with the GENIUS Act of 2025. This allows you to hold assets that qualify as reserves for USD-backed stablecoins like USDT. As a result, the launch has attracted attention from both crypto investors and traditional institutions.
Latest: ⚡ ProShares has launched a new GENIUS Money Market ETF that is compliant with the GENIUS Act and designed to hold assets that qualify as USD-backed stablecoin reserves. pic.twitter.com/kN0YkFAM6p
— CoinMarketCap (@CoinMarketCap) February 20, 2026
ProShares launches first GENIUS-compliant ETF
First of all, ProShares says the IQMM ETF is the first money market fund structured according to the rules of the GENIUS Act. Signed in July 2025, this law created a clear federal framework for stablecoins in the United States. Therefore, stablecoin issuers must meet strict standards. For example, tokens must be backed by high-quality assets in accordance with anti-money laundering laws.
IQMM meets these reserve requirements because it invests in short-term U.S. Treasury securities. In other words, assets within the fund can support USD stablecoins in a compliant manner. This structure gives investors additional confidence. At the same time, it provides a simple and regulated path to digital asset finance.
How ProShares bridges finance and cryptocurrencies
More importantly, ProShares is helping bridge the gap between Wall Street and the crypto market. Traditionally, money market funds focused only on government debt and low-risk assets. However, this ETF connects those safe assets to the stablecoin ecosystem.
As stablecoins continue to grow, the need for reliable reserves becomes even more important. Currently, the market capitalization of stablecoins is over $200 billion. Therefore, regulated reserve products may become essential. The ETF could attract banks, treasurers and institutional investors by offering the yield of compliant assets.
Why is regulation important now?
The GENIUS Act will play an important role in this change. Without regulation, many institutions will be hesitant to enter the crypto market. However, clear rules reduce uncertainty. As a result, companies can build products with confidence.
Additionally, investors gain transparency. They understand how the assets and funds underlying stablecoins are managed. As a result, trust in the system may increase over time.
What this means for the market
Overall, ProShares is positioning itself at the center of regulated digital finance. Although it will take time to implement, this ETF has the potential to set a new standard. As more companies follow this model, stablecoins could become further integrated into traditional finance.
So far, ProShares has taken an important first step. And the lines between crypto and traditional markets are likely to continue to blur as regulation and innovation advance together.
