Circle stock surges 266% as new ETFs target $113 price
Circle Internet Group (CRCL) has seen its stock price surge 266 percent since its initial public offering last Thursday, reaching $113 per share.
In response, Proshares and Bitwise have filed to launch two new single-stock exchange-traded funds (ETFs) designed to capitalise on CRCL’s market momentum.
Proshares’ Ultra CRCL ETF aims to deliver twice the daily performance of CRCL’s stock by using derivatives such as swaps to amplify returns and losses.
This leveraged fund is intended for short-term traders, as compounding effects over longer periods can cause deviations from the 2x target.
Bitwise’s CRCL Option Income Strategy ETF employs a covered call strategy, selling call options on CRCL shares to generate income while limiting upside potential.
Covered calls involve selling call options against owned stock, allowing investors to collect premiums in exchange for agreeing to sell shares if the price exceeds a set level.
CRCL’s price volatility makes it suitable for these strategies, with the stock hitting an all-time high of $138.57 recently.
The stock’s fluctuations are influenced by its connection to stablecoin issuer Circle and the broader cryptocurrency market.
Proshares’ filing warns of risks, including the possibility of total loss in leveraged positions if CRCL’s price falls 50 percent intraday.
Bitwise’s fund seeks to reduce downside risk through options income but may underperform during sustained rallies.
The launch of these single-stock ETFs reflects growing Wall Street interest in monetising CRCL’s rapid rise.
These products cater to different investor profiles, from aggressive traders seeking amplified gains to income-focused investors looking for premium generation.
