NEW YORK — ProShares GENIUS Money Market ETF racked up $17 billion in volume during its debut session Tuesday, dwarfing the previous record for any ETF launch. Analysts called the figure staggering, far outpacing even BlackRock’s iShares Bitcoin Trust, which pulled in about $1 billion on its January 2024 launch.

The ETF, trading as IQMM, sticks closely to reserve standards set by the GENIUS Act, passed last July. That law demands stablecoin issuers back their tokens 1:1 with safe, liquid assets like short-term U.S. Treasury bills. IQMM mirrors those holdings exactly, giving investors ETF access to the same securities propping up regulated dollar-pegged stablecoins such as USDC.

Bloomberg ETF analyst Eric Balchunas posted on X that the volume was “multitudes beyond” anything seen before. He had pegged IQMM as a niche player, with investors likely favoring established money market ETFs like BIL or SHV. Instead, the surge hints at big institutional moves. Balchunas floated a “BYOA” theory—bring your own assets—where asset managers seed their own funds with client cash rather than buying rivals’ products.

Nate Geraci, president of NovaDius Wealth Management, zeroed in on stablecoin giants. He speculated on X that ProShares struck a deal with Circle, issuer of USDC, given IQMM’s asset mix. No confirmation emerged, but the theory fits: stablecoin firms could shift on-chain reserves into ETF shares holding identical assets, boosting volume instantly.

The fund lands amid stablecoins’ rise as everyday money in crypto. A Coinbase and Artemis study pegs total stablecoin supply at $300 billion, with holders parking about one-third of savings there alongside crypto assets, according to The Block reporting. IQMM taps that trend, offering brokerage-account exposure to GENIUS Act-compliant holdings.

ProShares positions IQMM at the crossroads of money markets and stablecoin rules. It skips broad fixed-income plays for laser-focused reserve-eligible Treasuries and equivalents. This setup draws traditional and crypto investors alike, bridging regulated funds with digital asset infrastructure.

The blockbuster debut spotlights deepening ties between ETFs and stablecoins. Geraci’s Circle nod highlights scrutiny on whether IQMM integrates with issuers’ treasury operations. If true, it could reshape how these firms handle collateral.

Washington watches closely. Crypto advocates and bankers met Thursday to hash out stablecoin reserve yields in a potential market structure bill. Talks cover who pockets interest from assets like those in IQMM and how it affects issuers and banks. Future rules could ripple through funds like this one.

IQMM’s launch resets expectations for ETF debuts. The $17 billion mark eclipses crypto hype around IBIT and signals massive appetite for GENIUS Act-aligned products. ProShares now anchors a niche exploding with regulatory tailwinds.