Cathie Wood’s Ark Invest has strategically offloaded a large chunk of its holdings in Circle Internet Group Inc. (CRCL), the issuer of the USDC stablecoin.
On Monday, Ark sold a total of 342,658 CRCL shares across three of its flagship exchange-traded funds (ETFs), realizing approximately $51.7 million in proceeds.
The sale occurred just as Circle’s stock soared to an all-time high of $151.06 per share, nearly five times its IPO price of $31 set earlier this month.
The timing of the sell-off strongly suggests that Ark was capitalizing on peak investor sentiment and locking in gains from the stock’s meteoric rise, following heightened enthusiasm for stablecoin-related assets.
ETF Portfolio Breakdown Reveals Strategic Rebalancing
A closer look at Ark’s daily trading disclosure reveals how the sale was distributed across its funds.
The largest reduction came from the ARK Innovation ETF (ARKK), which sold 196,367 shares.
The ARK Next Generation Internet ETF (ARKW) followed by shedding 92,310 shares, while the ARK Fintech Innovation ETF (ARKF) divested 53,981 shares. These moves follow Ark’s aggressive initial stake in Circle’s IPO, where it invested a staggering $373.4 million.
Despite the recent sell-off, Ark still maintains a substantial position in CRCL, signaling that this was not an exit but rather a portfolio rebalancing decision.
The reallocation likely reflects Ark’s efforts to manage exposure after Circle’s rapid valuation jump, consistent with their active management style.
CRCL Stock Rallies on Stablecoin Growth and Regulatory Optimism
Circle’s stock has surged on the back of intensifying investor interest in the stablecoin ecosystem.
On Monday, CRCL not only reached a closing high of $151.06 but also hit an intraday peak of $165.60, marking a daily gain of 13.1%.
The dramatic price movement is being driven by accelerating adoption of USDC, Circle’s flagship dollar-pegged stablecoin, which remains the second-largest globally after Tether (USDT).
Contributing to investor optimism is the proposed GENIUS Act, a U.S. legislative measure aimed at integrating digital assets into traditional finance.
The potential policy shift has placed companies like Circle at the center of a fast-evolving digital financial future, prompting speculative inflows and institutional attention.
Also Read: Cathie Wood’s Ark Invest Acquires 84K Coinbase Shares For $13.3M Amid Market Slump
CEO Jeremy Allaire Eyes Long-Term Potential for USDC
Amid the stock rally, Circle CEO Jeremy Allaire has publicly shared his long-term optimism about the company’s trajectory and the broader role of stablecoins.
Over the weekend, Allaire posted on X that stablecoins, including USDC, have yet to reach their “iPhone moment”, a metaphor for the inflection point when the technology becomes a mainstream necessity.
Comparing today’s stablecoin ecosystem to the early, experimental era of mobile apps, Allaire emphasized that the most transformative use cases of programmable money are still in development.
With supportive legislation on the horizon and growing global developer activity, Allaire believes Circle is well-positioned to lead the next wave of digital financial infrastructure.