Overview

• On its third trading day, Circle’s shares reached a record intraday high of $138.57, up 347% from the $31 IPO price, before settling near $116 on heavy volume.
• Cathie Wood’s ARK Invest and Japan’s SBI Holdings together secured millions of Circle shares, positioning ARK with more than $500 million in unrealized gains.
• At least three new ETFs—ProShares Ultra CRCL, Bitwise CRCL Option Income Strategy and T-Rex 2x Long CRCL—have been filed to provide leveraged and income-focused exposure to Circle stock.
• The company’s revenue model, which relies on interest earned on the $60 billion in reserves backing USDC, faces potential headwinds from anticipated Federal Reserve rate cuts.
• Market observers say Circle’s IPO success paves the way for other crypto firms to list publicly and highlights the importance of forthcoming stablecoin regulation for long-term growth.