Ark Invest Expands Crypto Holdings
Ark Invest, the investment firm led by Cathie Wood, significantly increased its exposure to cryptocurrency-related stocks on Tuesday. The firm purchased $13.5 million worth of Block Inc. shares, $7.6 million in Circle Internet Group, and $3.86 million in Coinbase. This buying spree occurred amidst falling prices and a broader downturn in the cryptocurrency market.
The firm continued to build its positions in cryptocurrency-related equities through various exchange-traded funds (ETFs). The majority of these purchases were made through the Ark Innovation ETF (ARKK), as indicated by recent trade filings.
ARKK's Current Portfolio Allocation
Coinbase currently represents the fourth-largest holding within the Ark Innovation ETF, valued at $391 million. This position accounts for approximately 5.22% of the fund's total portfolio. Additionally, the ARKK fund holds $179 million worth of Circle, making up 2.39% of its holdings, and $85.2 million worth of Block.
Additional Crypto Stock Investments
In addition to the primary purchases, Ark Invest also acquired $1.52 million worth of Bullish stock, $878,794 in Robinhood Markets, and $2.8 million worth of its own Ark-21Shares spot Bitcoin ETF on Tuesday. The company has been consistently adding to its crypto-related stock holdings across its ETFs in recent weeks.
Performance of Key Crypto Stocks
Block, the financial services company co-founded by Jack Dorsey with a strong focus on cryptocurrency, closed Tuesday with a 2.96% gain, reaching $63.69. However, despite this modest daily increase, the stock has experienced a 20.54% decline over the past month.
Circle, the issuer of USDC, saw its stock fall by 3.62% to $70.11. This price is 51% lower than its value one month ago. Coinbase also experienced a dip of 0.72% on Tuesday, and its stock is down 30% over the past month, reflecting the broader sector's pressure.
Market Context and Ark's Strategy
The decline in cryptocurrency-related stocks is occurring in parallel with a general market depreciation. This trend is largely attributed to thin liquidity and prevailing uncertainty surrounding the macroeconomic environment. Bitcoin is currently trading at $87,948, a significant decrease from its all-time high of $126,000 recorded just six weeks prior.
Ark Invest appears to be leveraging the recent underperformance of cryptocurrency stocks to build new positions and expand existing ones. The firm's strategic approach involves accumulating shares during periods of weakness observed across the digital asset ecosystem.