Cathie Wood’s ARK Invest Sells $51.8 Million in Circle Shares Amid 13% Stock Rally

Cathie Wood’s ARK Invest has reduced its holdings in Circle, the issuer of the USDC stablecoin, by selling $51.8 million worth of shares. This move comes as Circle's stock continues to rally, closing at $151.06 on Monday, marking a 13% gain for the day. Since its listing on the NYSE on June 5, Circle's shares have surged nearly fivefold from their initial public offering (IPO) price of $31.

ARK Invest sold a total of 342,658 shares across three of its actively managed exchange-traded funds (ETFs). The ARK Innovation ETF (ARKK) offloaded 196,367 shares, the ARK Next Generation Internet ETF (ARKW) sold 92,310 shares, and the ARK Fintech Innovation ETF (ARKF) trimmed 53,981 shares. This sale follows ARK Invest's initial purchase of $373 million worth of Circle shares when the company went public earlier this month.

ARK Invest's decision to trim its Circle holdings is part of a broader strategy that has seen the firm also reduce its positions in other crypto-linked companies, such as Coinbase and Robinhood. This move suggests that ARK Invest is looking to take profits as the stock prices of these companies continue to rise. The sale of Circle shares coincides with the stock's significant rally, indicating that ARK Invest is capitalizing on the increased value of its holdings.

Circle's stock has been on a remarkable run since its IPO, with gains almost every trading day. The company's success can be attributed to the growing demand for stablecoins, which are digital assets pegged to the value of a fiat currency, such as the US dollar. USDC, issued by Circle, is one of the most widely used stablecoins in the cryptocurrency market, providing a stable store of value and a medium of exchange for traders and investors.

ARK Invest's sale of Circle shares is a strategic move to lock in profits as the stock price continues to rise. The firm's decision to trim its holdings in other crypto-linked companies suggests a broader trend of taking profits in the sector. As the cryptocurrency market continues to evolve, investors and firms like ARK Invest are closely monitoring the performance of companies in the space, looking for opportunities to capitalize on their success.