ARK Invest Bets Big on Regulated Crypto Infrastructure, Shifting Focus from Traditional Tech Giants

ARK Invest, managed by Cathie Wood, has significantly increased its stake in Bullish, a digital asset exchange, adding $12 million in shares across its three flagship ETFs—ARKK, ARKW, and ARKF—on Monday, according to a Markets.com report. This purchase follows a $5.3 million investment in Bullish last week, bringing ARK's total holdings in the exchange to 2.27 million shares valued at $114 million, according to CoinDesk. CoinDesk also noted the firm's cumulative crypto-related exposure now exceeds $2.15 billion across its ETFs, reflecting a strategic shift toward blockchain infrastructure and away from traditional tech stocks like Palantir and Shopify.

The latest investment aligns with Bullish's recent regulatory and operational milestones. The exchange secured a BitLicense and money transmission license from New York regulators in October, enabling it to launch U.S. spot trading in 20 states, as reported by the Markets.com report. Institutional clients such as BitGo and Nonco have already begun using its platform, which has processed over $1.5 trillion in global trading volume since 2021, according to Cointelegraph. Bullish's CEO, Tom Farley, a former NYSE president, has emphasized the exchange's compliance-first approach, positioning it as a regulated alternative to offshore platforms, as noted by FinanceFeeds.

ARK's bullish stance coincides with Bullish's expansion of its services. The exchange launched a crypto options platform in late October, generating $82 million in trading volume within five days, per the Markets.com report. The platform allows users to leverage their entire portfolio as collateral across spot, futures, and options markets, attracting institutional participants like FalconX Global and Wintermute, the Markets.com report added. Despite a 0.71% dip in share price on Monday, Bullish's stock has shown resilience, recovering from a month-long decline, as a Crypto.news article noted.

ARK's accumulation of Bullish shares underscores its broader bet on regulated digital asset infrastructure. The firm's three ETFs now allocate 29% (ARKF), 25.7% (ARKW), and 17.7% (ARKK) to crypto-related assets, including stakes in Coinbase, Robinhood, and stablecoin issuer Circle, CoinDesk reported. Analysts note that ARK's strategy of buying during market dips—such as its $172 million initial investment in Bullish following its $1.1 billion NYSE IPO—positions it to capitalize on long-term growth in institutional-grade crypto services, FinanceFeeds observed.

The timing of ARK's latest purchase also aligns with Bullish's upcoming third-quarter earnings report on November 19, which could highlight further progress in U.S. expansion and trading volume, Crypto.news also noted. With Bullish now ranking among the top 10 exchanges for Bitcoin and Ether activity, Cointelegraph's coverage suggests ARK's continued support signals confidence in the exchange's ability to compete in a regulatory-tightened market dominated by firms like Coinbase.