Cathie Wood is leaning further into Circle Internet Group (NYSE:CRCL) at a time when Wall Street is becoming increasingly divided on the stablecoin issuer’s outlook.
According to ARK Invest’s latest daily trade disclosures, the firm bought 201,917 Circle shares on Tuesday across the ARK Innovation ETF (BATS:ARKK) and ARK Next Generation Internet ETF (BATS:ARKW), while trimming 27,742 Robinhood Markets (NASDAQ:HOOD) shares from ARKK. The latest purchases follow earlier buys on July 1 and July 9, bringing ARK’s disclosed July purchases of Circle to more than 725,000 shares across its actively managed ETFs.
The aggressive accumulation comes as Circle faces mounting headwinds despite improving regulatory prospects, underscoring ARK’s conviction that the long-term stablecoin opportunity outweighs near-term competitive and valuation concerns.
• Circle Internet Group shares are climbing with conviction. Why are CRCL shares rallying?
Buying Into Weakness
Circle shares have fallen roughly 2% year to date and remain about 7% below their post-IPO high, pressured by slowing investor sentiment and intensifying competition in the fast-growing stablecoin market.
The latest setback came after the launch of Open USD, a consortium-backed stablecoin supported by Coinbase Global Inc (NASDAQ:COIN) and BlackRock Inc (NYSE:BLK). The new entrant adds another heavyweight competitor to a market already dominated by Tether’s USDT and has raised concerns that Circle could face pricing pressure as large financial institutions increasingly enter the sector.
Adding to the uncertainty, Circle’s earnings remain closely tied to interest income generated from reserves backing USDC, meaning future Federal Reserve rate cuts could weigh on profitability.
Why ARK Is Staying Bullish
Despite the headwinds, ARK appears to be treating the recent selloff as a buying opportunity rather than a warning sign.
Circle recently secured a national trust bank charter from the Office of the Comptroller of the Currency, allowing it to manage USDC reserves under federal oversight. This strengthens its regulatory credentials as policymakers move toward a clearer framework for digital assets.
The company also remains one of the largest players in the approximately $310 billion global stablecoin market. While USDC’s circulating supply has slipped to roughly $73 billion from its March high of almost $80 billion, it is still around 17% higher than a year ago, reflecting continued long-term adoption.
ETF Exposure Grows
ARK’s repeated purchases have turned Circle into a meaningful holding across its actively managed ETFs. The stock now accounts for roughly 4.4% of the ARK Fintech Innovation ETF (NYSE:ARKF) and about 3.4% of the flagship ARKK, making it one of the firm’s larger digital asset positions.
The move also highlights a broader theme for ETF investors.
Rather than simply betting on crypto trading activity, ARK is increasing exposure to companies building the infrastructure behind digital finance — including stablecoins, tokenized payments and blockchain-based financial services.
That trend could also benefit crypto-equity ETFs such as the Amplify Transformational Data Sharing ETF (NYSE:BLOK), Bitwise Crypto Industry Innovators ETF (NYSE:BITQ), and First Trust SkyBridge Crypto Industry & Digital Economy ETF (NYSE:CRPT) as regulated stablecoin issuers become a larger part of the publicly traded crypto universe.
While some analysts have turned more cautious, citing slower USDC network activity and growing competition, ARK’s latest trades suggest Wood sees the current pullback as an opportunity to build exposure before stablecoins become a more mainstream component of the global financial system.
Photo: Courtesy Art Invest
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