Envelope Distort

Hi. Anyone have experience with making a 3 letter monogram in a circle? When I do make with top object, the letters get like pointy towards the edges. I made a monogram for a client and I ended up drawing the letters in a grid…
Now they want a more chilled type one with bubble letters in a circle. Any other ways to do this?
Thanks!

Not sure the best way, can you turn the letters into objects and then use the direct selection arrow to move points around so it fits in the circle.