ARK Invest has executed a significant reduction in its holdings of Circle (CRCL) shares following the company’s listing on the New York Stock Exchange. The investment firm sold 1.7 million CRCL shares, representing a 37% decrease from its initial position of 4.5 million shares. This divestment occurred as Circle’s share price reached a peak of $299.
The sales were distributed across several of ARK’s flagship exchange-traded funds. The ARK Innovation ETF (ARKK) sold 306,921 shares, the ARK Next Generation Internet ETF (ARKW) sold 72,302 shares, and the ARK Fintech Innovation ETF (ARKF) sold 36,621 shares. Following these transactions, ARKK retains 1.7 million CRCL shares, which constitute approximately 6.8% of its portfolio.
Post-divestment, ARK Invest’s aggregate position in Circle stands at 2.6 million shares. Based on recent valuations, this remaining stake is worth approximately $70 million.
ARK Invest’s partial exit strategy may reflect cautious investor sentiment or a deliberate portfolio rebalancing effort. This move occurs amidst ongoing regulatory scrutiny and broader uncertainties within the cryptocurrency market.
The listing of Circle on the NYSE and ARK Invest’s subsequent share sales underscore the evolving relationship dynamics between crypto-native companies and established traditional financial institutions.