Ark Invest Offloads Nearly $100M In Circle Shares Amid Market Pullback

By: Eliza Bennet

Ark Invest, the prominent investment firm led by Cathie Wood, has significantly reduced its holdings in Circle, a stablecoin issuer, by selling shares worth nearly $100 million over the past two days. This move reflects a strategic realignment within Ark's portfolios, as it continues to adjust its exposure to the volatile crypto market.

On June 17, Ark Invest offloaded 300,108 shares of Circle, amounting to approximately $44.7 million, across three of its exchange-traded funds (ETFs). The ARK Innovation ETF (ARKK) sold the largest number of shares at 208,654, followed by the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF), with 65,320 and 26,134 shares sold, respectively. This marked a continuation of the firm's recent sell-off trend, as Ark had already divested another $51 million worth of Circle shares the previous day.

The decision to reduce Circle's stock comes amidst a slight downturn in its stock price on the New York Stock Exchange (NYSE), where its shares closed 1.2% lower at $149.15 on June 17. Despite the small dip, pre-market data suggested a recovery, with a 3.43% increase in share value following the sell-off, indicating potential renewed interest among investors.

Cathie Wood, known for her bullish stance on cryptocurrencies, seems to be pivoting strategies with these recent transactions. Since its initial public offering (IPO), Circle has experienced fluctuations in its share price, affecting investor sentiment. Ark's decision to scale back its position in Circle, despite a historical bullish outlook, points to an evolving strategy in response to market dynamics. As the crypto market undergoes continuous change, investment activities like these underline the complexities and unpredictabilities that both companies and investors must navigate.