Ark Invest has offloaded over $44.7 million worth of Circle shares, trimming exposure to the stablecoin issuer just as the U.S. Senate passed the GENIUS Act, a major regulatory milestone for the crypto industry.
ARK Sells 300,000+ Shares in Circle
Cathie Wood’s Ark Invest sold a combined 300,108 shares of Circle Internet Group (CRCL) across three of its exchange-traded funds (ETFs) on Tuesday. The sale amounted to nearly $45 million, marking the second consecutive day of profit-taking as Circle’s stock continues to rise post-IPO.
CRCL closed Tuesday at $149.15, maintaining strong bullish momentum since its market debut earlier this month. Ark’s decision to reduce exposure comes even as investor sentiment around Circle remains positive following favorable regulatory developments.
GENIUS Act Passes Senate: A Boost for Crypto
The timing of Ark’s sale aligns with the U.S. Senate’s bipartisan approval of the GENIUS Act, a bill designed to regulate stablecoin issuers such as Circle. The legislation is considered a regulatory win for the crypto ecosystem, offering a legal framework for dollar-backed digital assets and fostering innovation while ensuring compliance.
The GENIUS Act introduces clear guidelines for reserve management, transparency, and issuer accountability, paving the way for greater trust in the stablecoin market. Circle CEO Jeremy Allaire praised the bill, calling it a “genius” move in a public statement.
Ark Rotates into AI and Semiconductor Stocks
While reducing its position in Circle, Ark redirected capital into high-growth tech plays. The firm notably increased its holdings in AMD, which has recently gained attention as a strong AI contender, and Taiwan Semiconductor (TSMC), a global leader in chip manufacturing.
This move reflects Ark’s continued conviction in the AI and semiconductor sectors, which have been central to its broader innovation-focused investment strategy.
Market Outlook
Although Ark’s profit-taking raised eyebrows, it may signal a tactical rebalancing rather than a loss of faith in Circle. With the GENIUS Act providing regulatory clarity, many analysts believe stablecoin-focused firms like Circle are well-positioned for long-term growth.
However, investors should watch how Circle performs post-regulation, especially as competitive and legislative landscapes continue to evolve.
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