David Edwards
Ark Invest, the asset management firm led by Cathie Wood, has made a decisive bet on the future of blockchain-based finance, acquiring $373.4 million worth of shares in stablecoin issuer Circle on the day of its public market debut.
The investment spans three of Ark’s flagship funds: Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF). In total, Ark purchased 4,486,560 shares of Circle, which began trading on the New York Stock Exchange under the ticker symbol “CRCL.”
Circle’s IPO proved to be a major market event, with shares surging 168.5% on their first day to close at $83.23, significantly above the initial offering price of $31. The stock briefly peaked at an intraday high of $96, reflecting overwhelming investor demand.
This public listing marks Circle’s third attempt at accessing capital markets, following a failed SPAC merger in 2021 and a confidential SEC filing in 2024. Despite initial concerns about macroeconomic headwinds—particularly trade uncertainty related to former President Trump’s tariff policies—the IPO launch was ultimately successful.
Circle CEO Jeremy Allaire described the listing as a pivotal moment for financial technology, stating: “Our becoming a public company is a powerful and important milestone in the transition to an internet-based financial system.”
Circle is the issuer of USDC, the world’s second-largest dollar-backed stablecoin after Tether’s USDT, currently boasting a circulating supply of $60.6 billion.
To finance the acquisition, Ark Invest restructured portions of its existing portfolio. It sold $17.1 million of its own ARK Bitcoin ETF (ARKB), while also offloading $39.4 million in Coinbase shares, $18.5 million in Robinhood stock, and $10.4 million worth of shares in Block, Jack Dorsey’s fintech company.
In accordance with Ark Invest’s diversification mandate—which limits any single asset from exceeding 10% of a fund’s portfolio—Circle’s allocation is currently:
- 4.4% in the ARKK fund ($251.8 million),
- 4.4% in ARKW ($77.2 million),
- 4.3% in ARKF ($44.5 million).
By comparison, top holdings in these funds include Tesla (10.3%), the ARK Bitcoin ETF (8.2%), and Shopify (9%).
Ark Invest’s move underscores growing institutional interest in digital assets and the infrastructure underpinning stablecoins, particularly as regulatory clarity and market adoption continue to advance.
