The cryptocurrency market has plummeted, and "Cathie Wood" has bottom-fished
As the cryptocurrency market experiences a significant correction, ARK Invest is increasing its investments in the crypto sector by purchasing shares of Bullish, BitMine, Circle, and Robinhood. ARK's actions contrast with the prevailing pessimism in the market, as there is a severe outflow of funds from the U.S. Bitcoin spot ETF market. ARK has increased its holdings in Bullish by approximately $2 million through three funds, BitMine by about $830,000, Circle by around $250,000, and Robinhood by about $200,000
As the cryptocurrency market experiences a significant pullback and investor confidence wavers, ARK Invest, led by Cathie Wood, is going against the trend.
The latest development occurred this Friday, when ARK Invest further increased its exposure to the crypto sector according to trading notifications. The company purchased shares of cryptocurrency exchange Bullish, Bitcoin mining company BitMine, stablecoin issuer Circle, and online brokerage Robinhood.
ARK's counter-cyclical moves sharply contrast with the current pessimistic sentiment in the market. The U.S. Bitcoin spot ETF market is experiencing one of the most severe outflows of funds since its launch.
On Friday alone, 12 ETF products recorded nearly $1 billion in net outflows, marking the second-largest single-day outflow in history. Over the past month, as Bitcoin prices have fallen about 30% from recent highs, the cumulative net outflow for these products has reached approximately $4 billion.
Comprehensive Increase, Focused Bet on Bullish
This Friday, ARK's buying actions covered multiple targets.
The largest acquisition was aimed at Bullish, with the ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW) collectively purchasing approximately $2 million worth of Bullish shares. On that day, Bullish's stock price rose by 5.75%.
Additionally, ARK continued to accumulate positions in Bitcoin mining company BitMine, purchasing approximately $830,000 worth of shares through the aforementioned three funds. Although BitMine's stock price slightly declined that day, it remained within its recent trading range.
The company also made small increases in its holdings of Circle and Robinhood. Trading records show that ARK bought 3,529 shares of Circle stock, valued at approximately $250,000, with Circle's stock price rising over 6% that day. Meanwhile, ARK also purchased approximately $200,000 worth of new shares of Robinhood.
Increasing Holdings in Bitcoin ETF Against the Market Trend
Against the backdrop of large-scale redemptions in the Bitcoin ETF market, ARK has chosen to go against the tide. On Friday, the company increased its exposure to Bitcoin ETFs by nearly $600,000, primarily through purchasing its own ARK 21Shares Bitcoin ETF (ARKB). Data shows that the ARKF and ARKW funds collectively increased their holdings of ARKB by over 20,000 shares.
This action highlights ARK's divergence from mainstream market sentiment. On the same day, the U.S. Bitcoin spot ETF market experienced nearly $1 billion in net outflows, making it the weakest week since February. ARK's buying behavior indicates that it views the current price decline as a good opportunity to increase its holdings in Bitcoin, a core digital asset.
"Cathie Wood" Continues to Bottom Fish for a Week
Friday's trading was not an isolated event but a continuation of ARK's series of sustained buying operations throughout the week.
According to trading records, Thursday was ARK's largest acquisition day of the week. The company spent $10.1 million to buy Coinbase shares, $9.9 million to buy BitMine, $9 million to buy Circle, and $9.65 million to buy Bullish. Additionally, it increased its holdings by $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, about $15 million in Circle shares, and about $7.6 million in BitMine shares through its ARKK, ARKF, and ARKW funds. This series of increasing actions clearly indicates that ARK is systematically leveraging the market pullback to enhance its long-term value in cryptocurrencies and related technology companies.
Risk Warning and Disclaimer
The market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investment based on this is at one's own risk
