Markets: ARK Invest Realizes Early Profit from Circle Holdings
Prominent cryptocurrency-friendly asset manager Cathie Wood’s ARK funds execute first sale of Circle shares since its NYSE debut.
Asset manager ARK Invest, known for its technological innovation focus and championing of asset classes like Bitcoin (BTC), successfully realized its first profit from its investment in stablecoin issuer Circle shortly after its initial public offering (IPO).
On June 17, ARK sold 342,658 shares of Circle (CRCL) through its three flagship funds — ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF) — generating approximately $51.7 million in gross proceeds, according to a transaction notification reviewed by Cointelegraph.
This sale comes exactly 11 days after Circle began publicly trading on the New York Stock Exchange (NYSE) on June 5 at $31 per share. ARK had acquired Circle shares on the launch day, scooping up a total of approximately 4.49 million shares initially valued at around $373.4 million.
CRCL Remains ARK’s Strategic Top Holding
Despite this venting of profits, Circle continues to rank among the top holdings within ARK’s suite of exchange-traded funds, reflecting its core strategic positioning within ARK’s broader technology investment thesis.
CRCL holds the largest weight in ARKK, the fund with a $5.6 billion assets under management benchmark, accounting for roughly 6.6% or approximately $387.7 million of its assets. This represents a slight nibble below its initial purchase concentration.
| Fund | CRCL Value ($) | Position % | AU($) / Note |
|---|---|---|---|
| ARKK | $387.7M | 6.6% | $5.6B |
| ARKW | $124M | 6.7% | $1.9B |
| ARKF | $72M | 6.7% | $895M |
While ARKW holds $124 million worth of Circle stock, current figures place Coinbase over slightly, with a 6.8% weighting against ARKF’s $1.9 billion asset base. The ARKF fund holds the smallest portion of Circle shares relative to its size, valued at $72 million or roughly 6.7% of its portfolio, which currently stands at $895 million.
Solid Performance Following Strong Debut
ARK became one of the early and significant investors in Circle, reportedly expressing interest in acquiring up to $150 million worth of stock prior to the company’s IPO, increasing its commitment as demand led to multiple upsizings before Circle’s June 5 listing.
Circle’s stock has surged dramatically since its debut. Following trading at the offering price, shares climbed over $164 shortly after the listing. As recently as Wednesday, June 19, stocks closed above $150, representing a roughly 118% increase since the IPO.
ARK’s research subsequently pointed to the stock’s success, suggesting the strong performance and initial investor demand spotlighted a positive shift in mainstream perception regarding the crypto industry.
“Applying Hernando de Soto’s framework, stablecoins are continuing the property rights revolution that Bitcoin launched,” ARK analysts observed. They further noted: “Bitcoin made financial property rights possible with smartphones. Stablecoins are advancing the cause with a less volatile asset and more utility across blockchains and financial platforms.”
The selling point framed stablecoin issuer Circle as part of the ongoing narrative of digital innovation and property rights facilitated by blockchain technology, a core theme in ARK’s investment approach.
Disclaimer: ARK Investments actively trades securities in publicly traded companies, including Circle, making the described transaction a standard investment activity. Information presented reflects the latest data based on publicly available disclosures.
