Cathie Wood’s ARK Invest trims Circle exposure after massive IPO gains
ARK Invest has sold $52 million worth of Circle shares across three of its funds, just 11 days after Circle began trading publicly. The move reflects a strategy to lock in gains as Circle’s stock has nearly doubled since its debut.
ARK Offloads Circle Shares Worth $52M
On June 16, ARK Invest sold 342,658 Circle (CRCL) shares worth approximately $51.8 million. This was the first divestment from its Circle position since the stock’s public debut. The sale was distributed across:
- ARK Innovation ETF (ARKK): 196,367 shares
- ARK Next Generation Internet ETF (ARKW): 92,310 shares
- ARK Fintech Innovation ETF (ARKF): 53,981 shares
Despite the sell-off, Circle remains a top-five holding in all three funds. For instance, Circle accounts for 6.55% of ARKK’s $5.6 billion assets under management.
Circle Stock Rally Fuels Profit-Taking
Circle’s stock closed at $151.06 on June 16, reflecting a 13% daily gain and a 118% increase since its NYSE launch. Some trading platforms even reported that Circle’s shares have gained nearly fivefold from its IPO valuation of $31, suggesting strong investor demand during initial offerings.
The price surge follows increased institutional interest and a growing shift in public sentiment about stablecoins. According to ARK analysts, stablecoins represent a continuation of the “property rights revolution” that Bitcoin began, offering more stability and utility in blockchain ecosystems.
What Has Happened So Far
- Circle launched on the New York Stock Exchange (NYSE) on June 5, 2025, priced at $69 per share.
- ARK Invest immediately purchased $373 million worth of shares across three funds: ARKK, ARKW, and ARKF.
- Circle stock has since surged, reaching a closing price of $151 on June 16—up 118% since launch.
- The stablecoin issuer is one of the top five holdings in each ARK ETF, with weights of around 6.7%.
Strategic Portfolio Rebalancing
Cathie Wood’s fund has also been trimming its positions in other major crypto-linked firms, including Coinbase and Robinhood. The sale of Circle shares appears to be part of a broader profit-booking and rebalancing strategy across ARK’s portfolios.
Circle remains one of ARK’s most significant holdings. The rapid appreciation in Circle stock gave ARK an opportunity to realize short-term profits while maintaining substantial long-term exposure.
Final Thoughts
While some may interpret ARK’s $52 million sale as a bearish signal, the move aligns with typical fund management practices of rebalancing portfolios after sharp price movements. As Circle continues to define its role in the stablecoin space, ARK still holds a considerable stake, indicating ongoing confidence in the company’s long-term potential.
