From Yahoo Finance: 2025-06-09 18:00:00

Circle Internet Group Inc. (CRCL) recently went public, prompting Bitwise and ProShares to file for ETFs tracking CRCL. Bitwise’s ETF is actively managed, while ProShares’ is 2x leveraged. Neither filing disclosed management fees or tickers. Circle, known for USDC, saw shares open at $69.

These new ETFs are targeted at short-term speculative investors, cautioned Morningstar’s Daniel Sotiroff. Leveraged ETFs like these often underperform due to volatility drag. Covered calls, a strategy used in these ETFs, are high-yield plays based on asset volatility. Sotiroff advised investors to steer clear of such investments.

Sotiroff analyzed thousands of ETFs and found only a fraction to be good long-term options. He suggested that investors ignore most ETFs, including those linked to CRCL. With Circle’s stock soaring post-IPO, interest in ETFs tracking its performance is on the rise.

Read more: Issuers File for ETFs Tracking Newly Debuted Circle Stock