IQMM’s rapid growth stems from stablecoin issuers parking reserves to comply with federal law, not retail demand.
ProShares’ IQMM ETF now holds $22.7 billion in assets, just three months after its February debut, when it recorded $17 billion in first-day trading volume. The fund leads a new category created to meet reserve requirements under the 2025 GENIUS Act, which mandates 1:1 backing for stablecoins with approved low-risk assets.
The GENIUS Act, signed in July 2025, requires stablecoin issuers to segregate reserves, submit monthly disclosures, and prohibit rehypothecation. The FDIC’s proposed rulemaking, open for comment until June 9, aims to implement these requirements. Before IQMM, issuers managed reserves in separate accounts, lacking a standardized vehicle.
IQMM’s assets are likely dominated by one or more stablecoin issuers, reflecting regulatory compliance rather than traditional investor demand. The fund’s structure aligns with the law’s narrow asset eligibility, including Treasury bills and repurchase agreements.