Cathie Wood's ARK Invest bought $43.5 million in crypto-related stocks over three trading days, wagering on a rebound as the sector hit its lowest point in two years.
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ARK Invest scoops up $43.5M in crypto stocks during dip
Cathie Wood's ARK Invest bought $43.5 million in crypto-related stocks over three trading days, wagering on a rebound as the sector hit its lowest point in two years.
ARK Invest bought $43.5 million in shares of Coinbase, Circle and three other crypto-related firms over three trading days, betting on a rebound as Bitcoin slid to a near two-year low of $58,190.
ARK's largest purchases went to Coinbase Global Inc. and Circle Internet Financial Ltd., whose shares had fallen 17 percent and 28 percent, respectively, over the prior month, according to daily trade disclosures published by the firm.
The firm also bought $5.2 million in Bullish, $5.1 million in Robinhood Markets Inc. and $1.7 million in SoFi Technologies Inc. Most of the shares were added to the ARK Innovation ETF, the firm's flagship fund, followed by the ARK Next Generation Internet ETF. The ARK Blockchain and Fintech Innovation ETF also received additional crypto-related stock allocations.
The purchases come as confidence fades that the CLARITY Act will pass before the November midterm elections, adding regulatory uncertainty to a sector already reeling from Bitcoin's 85 percent decline from its 2021 peak. ARK's contrarian bet shows the firm expects a specific event — whether legislative clarity or a macro shift — to reverse the selloff.
The CLARITY Act, which would establish a federal framework for digital asset regulation, has stalled in Congress as lawmakers debate provisions related to stablecoin oversight and securities classification. The bill's prospects have dimmed ahead of the midterm elections, when control of both chambers will be at stake.
Bullish, the crypto exchange operator that went public via a SPAC merger in 2024, has seen its shares decline as trading volumes across the industry fell. Robinhood, which generates a significant portion of its revenue from crypto trading, has been diversifying into tokenization to offset the downturn.
A Broader Bet on Tech
ARK also added to its positions in Elon Musk's SpaceX and software intelligence platform Palantir Technologies Inc. over the same period, while reducing holdings in Alibaba Group Holding Ltd., Roku Inc. and Strata Critical Medical. The rotation shows ARK doubling down on its tech and crypto thesis even as the broader market turns cautious.
The purchases span both pure-play crypto firms and companies with growing digital asset exposure. Robinhood has pushed aggressively into crypto tokenization in recent months, while SoFi offers crypto trading through its banking platform. This breadth suggests ARK sees the downturn as a buying opportunity across the digital asset value chain.
The Contrarian Calculus
The purchases represent one of ARK's most aggressive crypto-sector bets this year. With Coinbase down 17 percent, Circle down 28 percent and Bullish down 26 percent in the past month, the firm is buying at prices that imply significant distress. Whether the bet pays off depends on regulatory outcomes and Bitcoin's ability to hold support above $58,000 — a level not tested since mid-2024.
The purchases were distributed across three of ARK's actively managed ETFs, with the ARK Innovation ETF receiving the largest allocation. The ARK Next Generation Internet ETF and the ARK Blockchain and Fintech Innovation ETF also added shares, according to the firm's daily trade disclosures.
ARK's buying spree comes after a period of sustained outflows from crypto-focused funds. The Grayscale Bitcoin Trust, a bellwether for institutional demand, has traded at a discount to net asset value for most of the past year, reflecting weak investor appetite. ARK's move runs counter to that trend, betting on a recovery that most institutional investors have yet to embrace.
The timing is notable. Bitcoin's slide to $58,190 marks its lowest level since mid-2024, erasing gains from the rally that followed the approval of spot Bitcoin exchange-traded funds in January of that year. The cryptocurrency has lost more than 80 percent of its value from the all-time high of about $69,000 reached in November 2021, a decline that has dragged down the entire crypto equity sector.
This article is for informational purposes only and does not constitute investment advice.
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