ARK Invest Dumps $146.3M More Circle Shares After Meteoric 670% IPO Surge
ARK Invest significantly reduced its holdings in Circle (CRCL) across several of its ETFs, marking the third and largest such sale since Circle’s initial public offering (IPO). The most substantial reduction occurred in the flagship ARK Innovation ETF (ARKK), which offloaded 490,549 shares, representing approximately 1.8% of its portfolio. ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) also decreased their CRCL positions, selling 75,018 and 43,608 shares, respectively. Based on the June 20 closing price of $240.28, these sales totaled approximately $146.3 million. This follows previous sales of $50 million and $44.7 million worth of CRCL shares.
This divestment comes after a remarkable surge in Circle’s stock price. Debuting at $31 on June 5th, the stock rapidly climbed to $240 by June 20th, representing a gain exceeding 670% in just over two weeks. This IPO was the most dramatic for any U.S. company raising $500 million or more since 1980, according to Fortune, attracting significant investor interest fueled by positive regulatory developments such as the Senate’s passage of the GENIUS Act, aimed at providing clearer regulatory frameworks for stablecoins.
Simultaneously, ARK Invest shifted its investment strategy, adding shares of companies outside the cryptocurrency sector. These additions included chip manufacturer AMD, e-commerce giant Shopify, and Taiwan Semiconductor Manufacturing Company, indicating a portfolio diversification strategy.
Despite ARK’s reduced stake, Circle’s USDC stablecoin remains a major player in the market, currently holding the second-largest market capitalization with $61.26 billion in circulation. While Tether’s USDT maintains a larger market share at $155.88 billion, USDC’s adoption continues to grow. Recent developments highlight this growth, including Coinbase Derivatives’ collaboration with Nodal Clear to integrate USDC as collateral in regulated U.S. futures markets, and Shopify’s integration of USDC payments via Base. This suggests continued strong underlying demand and potential for future growth despite ARK’s recent sell-off.
