Cathie Wood's Ark Invest has further reduced its holdings in Circle, the stablecoin issuer, selling approximately $45 million worth of shares on Tuesday, June 17, 2025. This follows a previous sale of $51.7 million on Monday, bringing the total value of Circle shares offloaded by Ark in the past two days to roughly $96.5 million.
The recent sales were executed through three of Ark Invest's exchange-traded funds (ETFs): the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). Specifically, on Tuesday, ARKK shed 208,654 Circle shares, ARKW sold 65,320 shares, and ARKF divested 26,134 shares.
These sales represent a significant portion of Ark Invest's initial investment in Circle. Earlier in June, during Circle's debut on the New York Stock Exchange (NYSE), Ark Invest purchased approximately 4.49 million shares, valued at $373.4 million based on the closing price on the first day of trading. The recent sell-offs account for roughly 14% of that initial purchase.
The timing of Ark Invest's decision to reduce its stake in Circle comes amidst a period of strong performance for Circle's stock (CRCL). Since its IPO on June 5, when it opened at $31, the stock has experienced a substantial increase, reaching a peak of over $165 on Monday. While the stock closed down 1.26% at $149.15 on Tuesday, it gained 2.84% in after-hours trading, remaining significantly above its IPO price.
The reasons behind Ark Invest's sales are not explicitly stated, but several factors could be influencing the decision. One possibility is profit-taking, as the significant increase in Circle's stock price since its IPO would allow Ark Invest to realize substantial gains on its initial investment. Another potential factor is regulatory scrutiny surrounding the stablecoin market. Concerns about the stability and potential risks of stablecoins have led to increased calls for regulation and oversight. Ark Invest's decision to sell Circle shares could be a response to these concerns, or a reflection of a broader investment strategy shift.
Despite the recent sales, Circle remains one of the top holdings across Ark's three major funds. ARKK, the largest of the three, holds the largest CRCL position at $387.7 million, representing approximately 6.6% of its total assets. ARKW and ARKF also maintain significant positions in Circle, each holding over 6.7% of their respective portfolios in CRCL.
The stablecoin market and Circle itself, are likely to be affected by Ark Invest's decision to sell shares. Circle plays a vital role in the cryptocurrency ecosystem as one of the largest issuers of stablecoins. Changes in its shareholding structure could have ripple effects throughout the market. Analysts and investors will closely monitor Circle's response to the sell-off and its potential impact on the company's future prospects. Furthermore, traders are closely watching how CRCL responds to recent developments in the GENIUS Act, a landmark stablecoin bill in the U.S. Earlier on Tuesday, the Senate passed the legislation, moving the bill to the House of Representatives for further discussion and voting.
