Crypto Slumps, ARK Invest Buys the Dip with $10M Bullish Bet

ARK Invest added $10.2 million in Bullish shares across three of its ETFs on November 17, betting on the cryptocurrency exchange even as its stock hit a record low amid a broader crypto market selloff. The ARK Innovation ETF (ARKK) acquired 191,195 shares, while the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) purchased 56,660 and 29,208 shares, respectively according to reports. Bullish (BLSH) closed down 4.5% at $36.75 on Monday, having lost nearly 46% of its value over the past six months as financial data shows. The purchase occurred just two days before Bullish's third-quarter earnings report, scheduled for November 19.

Bullish, backed by billionaire Peter Thiel, reported $57 million in adjusted revenue for Q2 2025, down from $67 million a year earlier, but swung to a net income of $108.3 million-a stark contrast to the $116.4 million loss in Q2 2024. The exchange launched U.S. spot trading in October after securing a key New York license, a move that has driven over $1.5 trillion in cumulative trading volume since late 2021. Despite these developments, Bullish's stock has struggled alongside broader crypto-linked equities, with Marathon Digital, Riot Platforms, and Coinbase all posting declines.

ARK's investment in Bullish follows a broader strategy of accumulating crypto assets during market downturns. Last week, the firm purchased $7.28 million in Bullish shares, along with $15.56 million in Circle and $8.86 million in BitMine. This aligns with ARK's history of capitalizing on dips, such as its recent $46 million Circle buy-in as the stablecoin issuer's stock fell below $90. The firm's moves reflect confidence in the sector's long-term potential despite near-term volatility driven by macroeconomic uncertainty and regulatory scrutiny according to market analysis.

Market analysts remain divided on whether the crypto sell-off has reached a bottom. Tom Lee of BitMEX and Matt Hougan of Bitwise suggest technical indicators point to stabilization, with Bitcoin potentially nearing a floor amid ETF outflows and geopolitical tensions. However, the Federal Reserve's December rate-cut decision-currently priced at a 52% chance-remains a critical wildcard. A delayed or smaller-than-expected cut could exacerbate pressure on risk assets like crypto according to market forecasts.

ARK's latest purchases underscore institutional resilience in the crypto space. While the sector faces headwinds, including declining revenues at major miners and a bearish Bitcoin price trajectory, firms like ARK continue to position for recovery. Bullish's earnings report and broader market reactions to the Fed's policy path will likely shape the next phase of investor sentiment.