Cathie Wood's ARK Invest sold $52 million worth of Circle shares just 11 days after the company's successful IPO. This sale raises questions about Circle's future valuation and market prospects.
The Context of the Sale
ARK offloaded 342,658 Circle shares across three of its flagship ETFs—ARK Innovation (ARKK), Next Generation Internet (ARKW), and Fintech Innovation (ARKF)—on June 16, 2025. This marks ARK’s first sale of Circle stock since acquiring 4.49 million shares at IPO, a stake then valued at $373 million. Despite the sale, ARK still holds over 4.15 million shares worth roughly $628 million, maintaining Circle as a top holding in its funds.
Is This a Red Flag for Circle's Valuation?
Some market watchers see ARK’s move as a classic case of profit-taking after a parabolic rally, not an indictment of Circle’s long-term prospects. ARK has a history of trimming positions after sharp run-ups—recently doing the same with Coinbase and Robinhood—while maintaining core exposure to high-conviction names. On the day of the Circle sale, ARK also reduced Meta holdings and added to Nvidia and DoorDash, underscoring its dynamic approach to portfolio management.
Analyst Outlook for Circle in Q3
Equity analysts remain cautiously optimistic about Circle's future. Some see Circle’s stock as a potential $300 candidate if USDC circulation and platform revenues continue to scale. Others urge caution, citing the risk of post-IPO insider selling and the company’s reliance on interest income. The consensus: Circle’s Q3 earnings and USDC adoption trends will be critical in justifying its lofty valuation.
ARK Invest’s $52 million Circle sale is more a sign of disciplined portfolio management than a red flag for Circle’s future. With USDC adoption rising and Circle’s stock still a core ARK holding, all eyes now turn to Q3 earnings—and whether the stablecoin leader can maintain its momentum in a fast-evolving fintech landscape.
