ARK Invest, led by Cathie Wood, executed a sale of Circle shares totaling $51.8 million. This move follows a rapid rise in the value of Circle shares, known as the issuer of the USDC stablecoin.
Sale of Circle Shares
ARK Invest sold Circle shares across three actively managed ETFs. The transaction involved selling 196,367 shares of the ARK Innovation ETF (ARKK), 92,310 shares of the ARK Next Generation Internet ETF (ARKW), and 53,981 shares of the ARK Fintech Innovation ETF (ARKF), totaling 342,658 shares. Last week, Circle's shares closed at $151.06 in New York, nearly five times their initial offering price of $31.
ARK Invest's Strategy
Circle is known as the issuer of USDC. After going public, the company's shares experienced significant appreciation, allowing investment funds to rebalance their portfolios. On its first trading day, ARK Invest acquired $373 million worth of Circle shares, underscoring the fund's interest in crypto-related companies.
Adjustments in Crypto Sector
ARK Invest is also reevaluating its positions in other crypto-related companies, recently reducing its stakes in firms such as Coinbase and Robinhood. These decisions reflect rigorous risk management within the volatile crypto sector. Cathie Wood stated, "We continue to adjust our positions in crypto-related companies in parallel with market movements."
The sale of Circle shares by ARK Invest illustrates an active investment management approach amidst market volatility. This highlights the importance for investors to adapt their strategies in response to sharp stock value fluctuations.
