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Crypto World

ProShares’ GENIUS ETF Sees $17B Surge as Tokenized Fund Models Expand

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR

  • ProShares recorded $17 billion in first-day trading volume for its new GENIUS money market ETF.
  • The firm confirmed that internal fund allocations contributed to the early surge in activity.
  • The GENIUS ETF follows federal rules for stablecoin reserve standards under the GENIUS Act.
  • Analysts observed that the debut outpaced previous high-profile ETF launches across the market.
  • Tokenized money market funds continued to gain traction as institutions explored blockchain settlement.

ProShares opened its GENIUS-branded money market ETF with heavy trading and strong early flows as firms continued exploring tokenized fund structures, and the launch drew wide market attention as cash-management demand persisted and blockchain rails expanded. The surge placed new focus on how issuers used internal allocations while investors assessed broader shifts. The event also advanced discussion around how digital cash products could interact with regulated funds.

GENIUS ETFs and Early Market Activity

ProShares reported $17 billion in first-day volume for its Genius Money Market ETF, and the firm confirmed internal transfers fueled much of the total. The company used cash from existing funds to support treasury operations, and this move highlighted how issuers managed liquidity across products.

Bloomberg tracked the debut and compared it with other launches, and analysts noted the sharp difference in volume. The debut exceeded the first-day totals of new crypto and ESG ETFs, and it shifted attention to cash strategies.

The GENIUS structure aligned with federal requirements for payment-stable assets, and the fund held short-duration government securities. The law set clear reserve and disclosure standards, and issuers applied these rules to maintain consistent oversight. Market observers watched activity closely, and early trading showed strong operational utility. The ETF advanced its role as a treasury tool, and issuers framed the approach as a way to streamline internal flows.

Tokenized Funds Enter Broader Use Cases

Tokenized money market funds gained traction as firms tested blockchain settlement, and the products offered yield while operating within compliance frameworks. Issuers presented them as interest-bearing complements to digital dollars, and adoption increased across institutional channels.

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JPMorgan Chase strategists noted that tokenized fund shares could work as collateral, and they suggested the model preserved yield during transfers. One strategist said, “You can post money-market shares and not lose interest,” and firms continued building pilots.

The growth of tokenized vehicles aligned with rising stablecoin usage, and institutions explored both products for payments and custody. Funds positioned themselves as regulated alternatives, and issuers stressed transparency requirements. The Bank for International Settlements described tokenized money funds as fast-growing instruments, and the bulletin referenced their use in settlement trials. The report added context as markets evaluated new rails.

Regulatory Alignment and Current Developments

The GENIUS Act shaped how issuers structured reserves, and fund operators adopted those guidelines for liquidity portfolios. The law reinforced the role of high-quality assets, and managers applied these standards across new launches.

Firms also expanded product research, and issuers examined how tokenized versions might fit into custody systems. The approach strengthened administration flows, and providers continued monitoring regulatory updates.

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ProShares used the GENIUS branding to reflect compliance, and the ETF’s early volume elevated attention on regulated cash tools. The debut arrived as digital asset firms explored new pathways, and issuers weighed operational benefits.

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Crypto World

South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

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South Korea Tightens Crypto Rules with 5-minute Asset Verification Mandate

South Korea has ordered all crypto exchanges to reconcile their internal ledgers with actual asset holdings every five minutes after an inspection uncovered weaknesses in internal controls.

The directive was announced on Monday by the Financial Services Commission (FSC) after a meeting with top crypto exchanges and the Digital Asset Exchange Alliance (DAXA), during which they discussed the findings of an emergency inspection triggered by the Bithumb payout incident.

The inspection found that three of the country’s five major exchanges were reconciling balances only once every 24 hours, limiting their ability to respond quickly to discrepancies. Systems designed to halt trading during major mismatches were also found to be insufficient, raising concerns about how exchanges would handle large-scale errors.

In February, Bithumb mistakenly distributed 620,000 Bitcoin (BTC) to 249 users during a promotional event. The exchange later announced that it recovered 99.7% of the funds the same day. The remaining 0.3%, 1,788 BTC that had already been sold, was covered using company reserves.

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Related: Bithumb seeks to reappoint CEO despite recent controversies: Report

South Korea mandates five-minute asset checks

Under the new measures, exchanges must implement automated ledger-to-wallet reconciliation systems operating on a five-minute cycle. They will also be required to introduce defined criteria for triggering automatic transaction halts in the event of significant discrepancies.

Beyond reconciliation, regulators are pushing for sweeping changes to internal operations. High-risk processes like promotional payouts will require stronger oversight, including third-party cross-checks and multi-level approval systems. Exchanges will also need to separate high-risk accounts and implement automated verification tools for payments.

Top Korean crypto exchanges. Source: CoinGecko

Furthermore, external audits will shift from quarterly to monthly, while disclosures will expand to include detailed asset balances by wallet and ledger.

“The financial authorities and the DAXA plan to complete the rule changes needed to implement the improvement measures within April this year,” the FSC wrote.

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Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

Bithumb delays IPO to post-2028

Last week, Bithumb announced it is now targeting an IPO after 2028, marking another delay from its earlier 2025 plans as it works through restructuring and regulatory pressure. The exchange said it will focus on strengthening accounting policies and internal controls through 2027, following an advisory agreement with Samjong KPMG.

Meanwhile, Naver Financial has also delayed its planned share swap with Dunamu by about three months, now targeting a shareholder vote on Aug. 18 and completion by Sept. 30.

Magazine: South Korea gets rich from crypto… North Korea gets weapons

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