ARK Invest Amplifies Its Crypto Bet Amid Market Volatility
Cathie Wood’s ARK Invest has made a decisive move to increase its holdings in the crypto-linked equities sector, acquiring substantial shares in Bullish and Robinhood. This action comes during a period characterized by widespread sell-offs in the sector, underscoring ARK’s strategic approach to capitalize on market dips.
The details emerge from ARK Invest’s latest trade notifications, which reveal that the flagship ARK Innovation ETF (ARKK) secured 356,346 shares of Bullish valued at approximately $21.2 million, alongside 150,908 shares of Robinhood Markets, worth $16.2 million. This reflects a clear intent to bolster its portfolio with high-potential crypto-related assets despite prevalent market uncertainties.
ARK’s Recent Moves in the Crypto Sector
Significantly, last week saw ARK Invest make a substantial acquisition of Bullish shares, buying 2.53 million shares valued at $172 million across three ETFs. This purchase followed the crypto exchange’s debut on the New York Stock Exchange, marking a significant milestone for Bullish.
In parallel, ARK Invest has been consistently increasing its stake in Robinhood, marking three consecutive sessions of acquisitions. The firm procured $14 million in shares on Monday and an additional $9 million on Friday, highlighting a robust belief in Robinhood’s potential despite previous adjustments to comply with regulatory constraints under Rule 12d3-1.
Crypto Stocks Face Downward Pressure
Despite these strategic investments, both Bullish and Robinhood witnessed declines on Tuesday. Bullish experienced a 6.09% drop, closing at $59.51, with an additional after-hours decline of 3.24%. Robinhood’s shares fell by 6.54% to $107.50, with a further 1.23% decrease in post-market trading.
This downturn was not isolated, as the broader market saw similar trends. Crypto-exposed equities such as Coinbase, Galaxy Digital, Strategy, and Circle also saw declines, reflecting a cautious investor sentiment. The Nasdaq Composite’s 1.46% drop further signals widespread market apprehensions.
Analysts from CNBC suggest that the retreat in crypto stocks follows a temporary boost driven by rate-cut optimism. The focus now shifts towards the upcoming US Federal Reserve’s Jackson Hole symposium, where any dovish indications from Chair Jerome Powell could potentially reverse current market sentiments.
Bullish’s IPO Success and Market Dynamics
Bullish recently made waves with its initial public offering, pricing shares above initial expectations at $32–$33 each and successfully raising $1.1 billion through the sale of 30 million shares. The company, based in the Cayman Islands and operating a cryptocurrency exchange while owning CoinDesk, saw its shares surge 83.8% above the IPO price during its first trading session.
The stock opened at $90 and peaked at $118 intraday, achieving more than 215% gains over the IPO price before retracting. This reflects significant investor interest and confidence in Bullish’s market positioning and future prospects.
For more detailed insights, visit the full article at Cointelegraph.
