Circle’s IPO turned into a masterclass in leaving money on the table, with shares rocketing from $31 to $82.84 on debut day. The $1.72 billion underpricing debacle ranks seventh in IPO history, but Wall Street didn’t waste time crying over spilled billions. ProShares, Bitwise, and T-REX immediately filed ETF proposals targeting Circle’s volatile stock, with strategies ranging from covered calls to 2x leveraged exposure. This crypto-adjacent feeding frenzy signals just the beginning of what’s brewing.
Circle Internet just pulled off one of the most spectacular money-leaving maneuvers in IPO history. The stablecoin giant priced shares at $31, only to watch them rocket to $82.84 on day one. That’s a cool $1.72 billion left on the table. Ouch.
To put this disaster in perspective, Circle now ranks seventh among the biggest IPO underpricing blunders since 1980. Only heavy hitters like Visa, Airbnb, and DoorDash managed to fumble more cash. Circle had $849 million in the bank before going public. Their underpricing loss? Nearly twice that amount.
Circle’s $1.72 billion underpricing fumble ranks seventh-worst in IPO history, nearly doubling their pre-public cash reserves.
But here’s the twist. Wall Street absolutely loves this train wreck.
ProShares, Bitwise, and T-REX jumped into action faster than you can say “regulatory filing.” All three companies rushed to submit ETF proposals tied to Circle’s stock. The frenzy reflects massive appetite for crypto-adjacent investments without the headache of actually holding digital tokens.
Bitwise went creative with their “CRCL Option Income Strategy ETF.” They’re planning to use covered call options to squeeze income from Circle’s notorious volatility. Smart move, considering shares surged 270% post-IPO. While U.S. investors face limited crypto options on Binance.US compared to the global platform, ETFs provide an attractive alternative for gaining crypto exposure.
ProShares and REX took the aggressive route, filing for 2x leveraged exposure. Because apparently, regular Circle returns aren’t exciting enough. These amplified ETFs target investors who want higher risk and potentially higher rewards.
The institutional crowd joined the party too. ARK Invest scooped up over 3 million Circle shares for their ARKK ETF. When Cathie Wood’s team starts buying, you know something’s brewing.
Circle’s background adds fuel to this fire. They’re the brains behind USDC, the second-largest stablecoin after Tether. That positioning in the digital finance world makes them catnip for investors seeking crypto exposure through traditional markets. The entire IPO raised $1.1 billion after being upsized due to overwhelming investor demand. The significant institutional participation helped drive the massive first-day price surge.
The timing couldn’t be better. Regulatory sentiment toward digital finance appears increasingly favorable. The wave of ETF filings signals renewed bullishness across both IPO and crypto markets.
Circle’s IPO debut marks a landmark moment for crypto-adjacent equities. The company offered 24 million shares and watched institutional and retail investors pile in with equal enthusiasm.
Their spectacular underpricing might sting, but it’s creating opportunities for ETF innovation that could reshape how investors access digital finance exposure.
