ARK Invest Sells Approximately $51.7 Million of Circle Stock at Highs, Taking Short-Term Profits While Maintaining Long-Term Optimism on Stablecoin Industry
(Background: Circle’s stock price skyrocketed by 22%, surpassing $160 to set a new historical high! CRCL has risen over 420% in nine days, with institutions targeting $300)
(Context: The surge in Circle’s stock has upset some. Arca criticized: The allocation is too small, betraying crypto, and everyone should switch to USDT)
Precise Timing by ARK Invest
On June 16, Cathie Wood’s fund took advantage of Circle’s stock reaching an all-time high by selling nearly 342,000 shares, realizing approximately $51.7 million, while not completely exiting their position.
Selling at Highs
According to the trading records published by Ark Invest Daily, the ARK Innovation ETF (ARKK) sold 196,367 shares, the Next Generation Internet ETF (ARKW) sold 92,310 shares, and the Fintech Innovation ETF (ARKF) sold 53,981 shares, totaling 342,658 shares. At a closing price of $151.06, the cash generated amounted to about $51.7 million. On that day, Circle’s market price was nearly five times its IPO price of $31.
Here’s what moves Cathie Wood and Ark Invest made in the stock market today 6/16 @ArkkDaily
IPO Investment Increased from $150 Million to $373.4 Million
When Circle made its debut earlier this year, ARK initially planned to invest $150 million, but the actual amount increased to $373.4 million, supported by ARKK, ARKW, and ARKF funds. After the stock price exceeded $100, this reduction only recouped about 10% of the cost, indicating the fund’s continued optimism for future growth.
Stablecoins as Financial Allies
In its latest report, ARK described stablecoins as “allies of American finance.” As the issuer of USDC, Circle holds substantial dollar reserves and a network of banking partnerships, and is viewed by ARK as the utility provider for the blockchain economy.
Further Reading: ARK Invest: Stablecoins Will Be the U.S. Government’s Most Powerful “Financial Allies”
