ARK Invest Sells Nearly $100M Circle (CRCL) Shares in Two Days Amid Market Volatility and Regulatory Shifts
Cathie Wood’s ARK Invest has executed a rapid sell-off of Circle (CRCL) shares, offloading nearly $100 million in two days through its ARK Innovation (ARKK), Next Generation Internet (ARKW), and Fintech Innovation (ARKF) ETFs. The sales represent about 14% of ARK’s initial Circle position, acquired at the stablecoin issuer’s June 5 IPO. Despite the U.S. Senate passing the pro-stablecoin GENIUS Act, Circle shares dipped 1.3% to $149 after peaking at $165, indicating ongoing volatility. Other major holders, like BlackRock, have not mirrored ARK’s move, while Circle’s CEO and co-founders also plan to sell shares post-IPO. ARK’s aggressive profit-taking, despite regulatory clarity for stablecoins, signals a cautious outlook on Circle and potentially the broader stablecoin sector. Crypto traders should monitor for possible continued volatility in CRCL stock and watch for broader sentiment shifts in the stablecoin equity space.
Bearish
ARK Invest’s rapid sale of a significant portion of its Circle (CRCL) holdings following the IPO, even amid positive regulatory news for stablecoins, presents a bearish signal for the company and the broader stablecoin sector. The sales, totaling nearly $100 million, represent both profit-taking and a potential lack of confidence in Circle’s future price stability, especially as even company insiders are planning to sell. The CRCL stock demonstrated substantial short-term volatility, declining despite favorable legislative developments. Unless offset by new institutional buyers or positive company-specific catalysts, these sales could increase pressure on Circle’s price and may trigger further caution among traders, possibly leading to a bearish trend in CRCL and related equities.