ARK Invest Trims Circle Stake Amid Policy Shift
Cathie Wood’s ARK Invest kept up its selling streak this week, dumping another 300,108 shares of Circle Internet Group across three of its ETFs on Tuesday. The total haul? Roughly $44.7 million. This marks the second straight day of profit-taking, though it’s not entirely clear whether it’s a strategic pullback or just cashing in on recent gains.
Circle’s stock, trading under CRCL, closed at $149.15 in New York that day. It’s been holding steady since its wild debut earlier this month, when it shot up like a rocket. Some investors seem to think there’s still room to run, but ARK’s moves suggest caution—or maybe just rebalancing.
The GENIUS Act Looms Large
Timing is interesting here. The sell-off happened just as the U.S. Senate passed the GENIUS Act, a bipartisan bill aimed at tightening rules for stablecoin issuers like Circle. The industry’s calling it a win, and Circle CEO Jeremy Allaire even praised it on social media, joking about the “genius” naming.
But let’s be real—regulation cuts both ways. Clearer rules might help in the long run, but they could also squeeze margins or slow things down. ARK’s decision to lighten its Circle stake now might hint at some wait-and-see nerves. Or, you know, it could just be routine portfolio tweaking.
Shifting Gears to Chips
While ARK was offloading Circle shares, it was busy scooping up stakes in chip companies. AMD and Taiwan Semiconductor (TSMC) got the nod, according to investor disclosures. AMD’s been flying under the radar lately, at least compared to some of its flashier competitors, but its latest roadmap has a few analysts whispering about hidden potential.
TSMC, on the other hand, is the quiet giant—the company that actually makes the chips everyone’s fighting over. It’s not as glamorous as designing them, but it’s just as crucial. ARK’s bet here feels like a play on the unsexy, indispensable parts of the tech world.
What’s Next for Circle?
Circle’s stock has been a standout performer, but nothing goes up forever. ARK’s selling doesn’t necessarily spell doom—big funds adjust positions all the time—but it’s worth watching. If other big players follow suit, the momentum could stall.
Then again, with the GENIUS Act now in play, Circle might be sitting pretty if the rules end up favoring established players. For now, though, it looks like ARK’s decided to take some chips off the table. Literally and figuratively.
