Circle’s Explosive IPO Gains Draw Profit-Taking from ARK
ARK Invest has significantly reduced its holdings in Circle (CRCL) shares, cashing out approximately $146.3 million across its major exchange-traded funds (ETFs). This strategic move follows an unprecedented 670% surge in Circle’s stock price since its IPO earlier this month.
The fintech firm, known for issuing the USDC stablecoin, launched its IPO on June 5 at $31 per share. In just over two weeks, CRCL skyrocketed to $240.28 per share by the close of trading on June 20, marking one of the strongest public market debuts in decades.
Largest Sell-Off Since IPO
This marks ARK’s third and largest reduction in Circle shares. The flagship ARK Innovation ETF (ARKK) led the divestment, selling 490,549 shares, equal to about 1.8% of the portfolio. Additionally, ARKW (Next Generation Internet ETF) sold 75,018 shares, and ARKF (Fintech Innovation ETF) offloaded 43,608 shares.
Previously, ARK had sold off $50 million and $44.7 million in two separate rounds, making the latest $146.3 million sale a clear sign of portfolio rotation after the high-yielding IPO performance.
Regulatory Tailwinds Fueling USDC Momentum
Circle’s strong market debut is widely attributed to recent regulatory developments, particularly the GENIUS Act, passed by the U.S. Senate. The legislation seeks to establish a transparent regulatory framework for stablecoins, giving legitimacy and confidence to institutional investors.
Circle’s USDC is now the second-largest stablecoin by market cap, with $61.26 billion in circulation. Despite trailing Tether’s USDT (which leads with $155.88 billion), USDC is seeing rising adoption across payment and collateral systems.
Notably, Coinbase Derivatives has partnered with Nodal Clear to allow USDC as collateral in regulated U.S. futures markets, and Shopify has started accepting USDC payments via Base, increasing real-world usage.
ARK’s Strategic Shift to Traditional Tech
While reducing its exposure to crypto, ARK has rotated capital into traditional tech sectors. Across its funds, ARK added shares in:
- Advanced Micro Devices (AMD)
- Shopify
- Taiwan Semiconductor Manufacturing Company (TSMC)
This adjustment reflects a diversified growth strategy and a cautious rebalancing after Circle’s meteoric rise.
Conclusion
ARK Invest’s sell-off does not reflect a bearish stance on Circle but rather a classic move to lock in gains. With regulatory clarity boosting confidence in stablecoins, USDC’s growing footprint may continue to strengthen Circle’s long-term market position—despite short-term portfolio reshuffling by major investors like ARK.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.