As the cryptocurrency market experiences a significant pullback and investor confidence wavers, ARK Invest, led by Cathie Wood, is bucking the trend.
The latest move occurred this Friday, with ARK Invest further increasing its exposure to the crypto sector. The firm purchased shares in cryptocurrency exchange Bullish, Bitcoin miner BitMine, stablecoin issuer Circle, and online brokerage Robinhood.
ARK's contrarian strategy stands in stark contrast to the prevailing market pessimism. The U.S. Bitcoin spot ETF market is witnessing one of its worst outflows since launch.
On Friday alone, the 12 ETF products collectively recorded nearly $1 billion in net outflows, marking the second-largest single-day outflow in history. Over the past month, as Bitcoin prices retreated about 30% from recent highs, these products have seen cumulative net outflows of approximately $4 billion.
**Broad-Based Accumulation, Focus on Bullish** ARK's buying spree on Friday covered multiple targets.
The largest acquisition was Bullish, with three ARK funds—ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW)—collectively purchasing about $2 million worth of Bullish shares. Bullish's stock rose 5.75% that day.
Additionally, ARK continued accumulating positions in Bitcoin miner BitMine, buying approximately $830,000 worth of shares through the same three funds. Despite a slight dip in BitMine's stock price, it remained within its recent trading range.
The firm also modestly increased its holdings in Circle and Robinhood. Trading records show ARK bought 3,529 Circle shares worth about $250,000, with Circle's stock rising over 6% that day. Meanwhile, ARK also purchased around $200,000 worth of new Robinhood shares.
**Doubling Down on Bitcoin ETFs Amid Outflows** Against the backdrop of massive redemptions in the Bitcoin ETF market, ARK chose to swim against the tide. On Friday, the firm increased its Bitcoin ETF exposure by nearly $600,000, primarily by buying its own ARK 21Shares Bitcoin ETF (ARKB). Data shows ARKF and ARKW collectively added over 20,000 ARKB shares.
This move highlights ARK's divergence from mainstream market sentiment. On the same day, U.S. Bitcoin spot ETFs saw nearly $1 billion in net outflows, making it the weakest week since February. ARK's buying suggests it views the current price drop as an opportunity to accumulate Bitcoin, a core digital asset.
**"Cathie Wood" Spends the Week Bargain Hunting** Friday's trades were not isolated but part of ARK's sustained buying spree throughout the week.
According to trading records, Thursday marked ARK's largest acquisition day this week. The firm spent $10.1 million on Coinbase shares, $9.9 million on BitMine, $9 million on Circle, and $9.65 million on Bullish. It also added $16.8 million in Nvidia and $6.8 million in Robinhood.
Earlier on Wednesday, ARK had already purchased approximately $16.8 million in Bullish shares, $15 million in Circle, and $7.6 million in BitMine through ARKK, ARKF, and ARKW. This series of acquisitions clearly indicates ARK is systematically capitalizing on the market correction to bolster its long-term bets on favored crypto and related tech firms.
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