This new ProShares money-market ETF
IQMM (ER 15 bps) meets special requirements for holding assets that back stablecoins under the GENIUS Act (T-Bills/Notes up to 93-day maturity, etc). It's also being used by ProShares for holding cash for its other ETFs. So, it had a phenomenal growth in assets at launch.
Money-market mutual funds meeting the GENIUS ACT requirement include
FDLXX, SNSXX / SUTXX, STBXX, TFFXX, WGTXX.
Note that GENIUS Act requires T-Bills/Notes with
under 93-day maturity (
under 3-months) instead of average maturity or duration criteria allowed by SEC & followed by fund firms.
https://finance.yahoo.com/news/proshares-17-billion-etf-launch-131341365.html
Comments
Today, the Division of Investment Management issued an exemptive order for WisdomTree Treasury Money Market Digital Fund to permit investors to trade the MMF's shares at $1 with a dealer on an intraday basis, regardless of its end-of-day NAV.
https://x.com/SECGov/status/2026043887899361418
https://www.sec.gov/files/rules/ic/2026/ic-35968.pdf
*Government, Prime, Institutional-Prime.
but that's what is happening and now we have a 4th - GENIUS compliant m-mkt funds."
I guess we can be thankful that we have an abundance of geniuses in Congress!
• If I were to use some amount of existing SUTXX holdings within Schwab to buy shares of the IQMM ETF, would that in essence allow me to sell IQMM shares at anytime in the trading day, and then immediately transfer the sales proceeds within Schwab to, for instance, the Schwab checking account? In other words, to assign a portion of the existing Schwab holdings to an asset which does not need to wait until the following day to use for some other purpose?
• Will IQMM pay any sort of dividend like SUTTX does, or is income strictly from hoped-for price gain?
(Thanks- I hope that I'm being sort of clear on this.)
Below is a quasi AI view of the GENIUS act. I cannot verify the info presented, and assume the information to be accurate.
---The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed into law in July 2025, mandates that money market funds (MMFs) used as stablecoin reserves must adhere to strict liquidity and asset-quality standards to mitigate systemic risk. While these regulations aim to stabilize the digital asset ecosystem, they introduce specific risks for investors and institutions in 2026.
Primary Investment Risks
Yield Compression: Because the Act restricts reserves to low-risk, highly liquid assets like short-term U.S. Treasuries (maturities of 93 days or less), Genius-compliant MMFs may offer significantly lower yields than traditional money market funds with broader mandates.
Liquidity and Redemption Stress: During periods of high market volatility, stablecoin issuers may face rapid, large-scale redemption requests. This could force the underlying MMFs to liquidate assets quickly, potentially leading to depegging events or a failure to maintain a stable $1.00 net asset value (NAV).
No Government Guarantee: An investment in a Genius-compliant money market fund is not a bank account and is not insured by the FDIC or any other government agency. There is no requirement for fund advisers to reimburse losses during periods of market stress.
Structural and Systemic Risks
Reserve Quality Concerns: Critics argue the Act's permissible reserves—which include uninsured bank deposits and repurchase agreements—are still prone to "runs" and could create a "systemic shock vector" if a stablecoin failure cascades into the traditional banking sector.
Regulatory Uncertainty: As of February 2026, many specific capital and liquidity requirements are still in the notice-and-comment rulemaking phase, with final implementation expected by January 18, 2027. This "rulemaking gap" creates operational uncertainty for early adopters.
Concentration Risk: The payment system's network effects may lead to a few large stablecoin issuers dominating the market, potentially concentrating financial stability risks within a small number of massive reserve-holding MMFs.
Summary of Permissible Reserve Assets
Under the Act, MMFs serving as reserves must invest exclusively in:
U.S. Currency and Federal Reserve Bank balances.
U.S. Treasury Bills with a remaining maturity of 93 days or less.
Overnight Repurchase Agreements backed by short-term Treasuries.
Insured Demand Deposits at depository institutions.
This LINK is another source.
The above link is Google. I know you don't use Google, but can use DUCK with the words Genius Act Risks for your search with many other links.
Remain curious,
Catch
On web search, I found that Fido and Schwab BLOCK competing m-mkt funds (OEFs or ETFs) on their platforms. They want customers to use firm's m-mkt funds.
But IQMM may be available at other brokerages.
Merrill, though it sells non-house OEF MMFs, blocks ETF MMFs, even government funds like GMMF. Who'd have thunk Merrill would be more of a nanny than Vanguard? E*Trade sells third party OEF MMFs and appears to offer nine ETF MMFs including IQMM. Here's their ETF screener; enter Money Market for Morningstar Asset class.
https://www.etrade.wallst.com/research/Screener/ETF?isIframe=false
TIAA sells a slew of OEF MMFs (several NTF, most w/TF) but offers no ETF MMFs. This appears to be a business decision, not one of "protecting" investors. It does sell DUSL (Dow 3x).
A threshold question is why you are interested in this, or any, GENIUS Act MMF. As yogi wrote, as Google AI reported, and as stated in its prospectus: The fund is a government MMF (already the safest) but with even shorter maturities. That might sound like a better, super super safe fund, but because it is designed for use as stablecoin reserves, its customer profile is skewed and that adds to risk.