ARK Invests Cautious Approach to Crypto Market: Offloading $51.8M in Circle Shares
Cathie Wood's ARK Invest has reduced its holdings on Circle (CRCL), the stablecoin issuer, by selling $51.8 million worth of shares on Monday. The move comes as the company's stock extended its rally, closing at $151.06 in New York on Monday, a 13% increase from the previous day.
According to a daily email, ARK sold a total of 342,658 shares across three of its actively managed exchange-traded funds (ETFs). The ARK Innovation ETF (ARKK) offloaded 196,367 shares, ARKW sold 92,310, and ARKF trimmed 53,981.
Circle, which issues the USDC stablecoin, has gained every day but two since it listed on June 5. The shares have climbed almost fivefold from their initial public offering (IPO) price of $31. Interestingly, ARK bought $373 million worth of Circle on its first day of trading on the New York Stock Exchange (NYSE). This suggests that while the fund has reduced its holdings, it still has a significant stake in the company.
The reduction in Circle holdings by ARK Invest could be a sign that the fund is taking a more cautious approach to the crypto market amid recent volatility and uncertainty. The fund has also recently trimmed positions in other crypto-linked firms like Coinbase (COIN) and Robinhood (HOOD), which could be a sign of reallocating assets to other opportunities or adjusting its exposure to the crypto market.
Overall, while the move by ARK Invest may indicate a more cautious approach to the crypto market, it remains to be seen if this trend will continue as the market evolves and new opportunities emerge. The decision by ARK Invest to trim its holdings could be a strategic move to manage risk and capitalize on potential future growth opportunities in the ever-evolving crypto landscape.
