Friend of the show Mo Hagb joins us now and joins us once again.
He is the managing director and head of strategic products at ProShares, one of the pioneers of the ETF industry.
Welcome back to the show.
Thanks for having me, JD.
I know you're here today for a very special reason.
You just did the bell.
Let's talk IQMM, your new genius money market ETF.
What is it geared towards?
What is it all about?
Sure, yeah, look, we launched IQMM earlier this year, really targeting a wide variety of clients.
Uh, Specifically, we thought, what about the stablecoin issuers, right?
There was this legislation, the Genius Act, uh, which is kind of in the name of the fund, uh, essentially allowing, uh, Treasury assets to be invested in a money market structure in exchange traded fund space rather than mutual fund space, and it's been wildly successful.
It's actually one of the largest, the largest money market ETF in the world.
Wow.
So you saw an appetite for this particular type of.
Product.
Talk to me a bit more about the evolution, the shift from traditional mutual funds to money market ETFs.
And if you're a would-be investor out there, what are the key points about money market ETFs you would want them to better understand?
Yes, sure.
Look, it's still a new category, you know, we're again one of the largest funds in the category.
We've been live for a few months, but just like any other ETF, it's the tradability, it's the ease of access, it's the transparency, it's the low cost that applies to.
Many of the products you know and love today, and it's no different in the money market space.
Let me ask you about a few IQMM features, things like dual Nav or dual net asset value, same day settlement.
Please make those things make sense for people watching at home in plain English.
What do they mean?
Why do they matter?
Sure, again, when you think about stablecoin treasurers, they're issuing tokens that need to be backed 1 to 1 by risk-free assets, in this case treasuries, inside of 93 days.
In order to get access to that market and issue and redeem tokens, they kind of need price certainty at any time during the day.
So the dual Nav is essentially our way of allowing investors in the primary market to be able to redeem shares or create shares at noon and at the end of the day rather than just at the end of the day.
And T0 settlement is actually kind of the instantaneous ability to settle cash rather than wait until the next day to get it.
What do you see as being the future of cash in this new look world where ETFs continue to grow in popularity?
Look, I actually think this is just the beginning.
We're moving to a world where things don't happen during market hours.
They happen all the time.
So 24/5, 24/7, that's where we're headed.
So things that Can trade throughout the day, over the weekends, settle at any point during the day, and essentially have instantaneous liquidity and settlement, you know, very different than what we're used to today in products.
Obviously we're not there yet, but that's that's the future.
Yes, but probably not the the not too distant future perhaps.
Mo Hagman, welcome back to the show.
Nice to see you again, my man.
Good to see you.
Taking care.
Best to you and the team of Pro Shas, managing director, head of strategic products at ProShares.
