Key Notes
- ARK Invest has sold off $51.8 million worth of Circle shares across three of its ETFs.
- This comes after the firm purchased $373 million worth of Circle shares on its first day of trading on the NYSE.
- The Cathie Wood firm took its first profit since its exposure to the shares after a massive rally.
Cathie Wood‘s ARK Invest has sold off a sizeable portion of its Circle (CRCL) share holdings. This asset management firm trimmed $51.8 million worth of these shares amidst an extension in the stock price rally following its successful Initial Public Offering (IPO) listing.
ARK Invest First Divestment of CRCL Shares
In May, Circle filed with the New York Stock Exchange (NYSE) to go public in the United States. It eventually bagged the approval on June 5, fueling optimism in the broader crypto industry. It is worth noting that ARK Invest purchased $373 million worth of Circle shares on its first day on the NYSE. This capital covered 4.49 million shares from the prominent stablecoin issuer.
In fact, Circle ranked amongst the top ARK holdings across three funds, weighing up to 6.7%.
As reported by Coindesk, only eleven days later, ARK Invest sold 196,367 shares from its ARK Innovation Exchange Traded Fund (ARKK) fund, another 92,310 from ARK Next Generation Internet ETF (ARKW), and 53,981 from ARK Fintech Innovation ETF (ARKF).
This brought the total offload to 342,658 shares across three of its actively managed ETFs. Since Circle went live on the NYSE, this action is the first divestment of ARK’s CRCL shares.
Judging by the current sentiment surrounding CRCL, it is obvious that ARK Invest is trying to profit first from its exposure to the shares. Interestingly, Circle still remains one of the ARK’s top holdings across ARKW, ARKF, and ARKK. ARKK holds the largest CRCL position at $387.7 million, which accounts for approximately 6.6% of its total assets.
On the other hand, ARKW holds $124 million CRLC shares, representing 6.7% of its total assets. This comes after Coinbase Global Inc (NASDAQ: COIN), which has a weight of 6.8%. ARKF, the smallest fund among the three in Asset Under Management (AUM), holds $72 million CRCL shares, equivalent to 6.7% of its assets.
SBI Holdings Invests $50 Million in CRCL Shares
Apart from Cathie Wood’s ARK Invest, a few other institutions have taken their slice of the CRCL shares. Japanese financial giant SBI Group announced its strategic investment of $50 million in Circle on June 9. The investment was allocated evenly across SBI Holdings and its subsidiary SBI Shinsei Bank. SBI’s purchase represents 5% of the 34 million shares that Circle offered during its IPO.
This marked an expansion of SBI Holdings’ existing relationship with Circle. In 2023, the stablecoin issuer signed a memorandum of understanding (MoU) with the Tokyo-based firm as a sign of a partnership deal to expand its presence in Japan. By signing the MoU, Circle sought to broaden the adoption of its USDC stablecoin and the Web3 ecosystem outside the United States, where it is headquartered.
SBI Holdings’ recent investment in Circle has proven to be a wise buy, considering that the shares have increased incredibly since their first trading day. From $69 per share on June 5, they have now risen to $157.02.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
