In a surprising turn of events, Cathie Wood’s ARK Invest has offloaded nearly $100 million worth of shares in Circle Internet Group Inc., the issuer of the popular USDC stablecoin, just days after the company’s highly successful IPO. The sales, executed over two consecutive days, have raised eyebrows among investors and analysts tracking the blockchain and cryptocurrency sectors.
According to recent reports, ARK Invest sold a total of approximately 600,000 shares across its three ETFs, including the Innovation, Next Generation Internet, and Fintech Innovation funds. The transactions, valued at around $96-100 million, come after ARK initially purchased $373 million in Circle shares during the company’s debut on the public market earlier this month.
The decision to trim its holdings follows a massive 387% post-IPO rally in Circle’s stock price, which likely prompted ARK to take profits amid the surge. Despite the sell-off, the investment firm still retains a significant stake in Circle, signaling continued confidence in the stablecoin giant’s long-term potential.
Circle, a key player in the cryptocurrency space, has benefited from growing adoption of stablecoins and favorable regulatory developments, including the recent passage of the GENIUS Act in the U.S. Senate. This legislation is seen as a win for stablecoin issuers, potentially fueling further market interest in companies like Circle.
Market observers speculate that ARK’s move could be part of a broader portfolio rebalancing strategy, as the firm has also adjusted holdings in other crypto-related stocks like Coinbase and Robinhood in recent weeks. Whether this signals a shift in ARK’s outlook on Circle or simply profit-taking remains to be seen.
As the cryptocurrency market continues to evolve, ARK Invest’s actions will likely remain under close scrutiny. Investors are eager to see if this sell-off marks the beginning of a larger trend or if Circle’s strong fundamentals will prompt ARK to reinvest in the future.
Maria Lourdes
