Crypto has crashed badly; "Wood Sister" has bought the dip.
As the cryptocurrency market faces a significant pullback and investor confidence is shaken, ARK Invest led by Cathie Wood is moving against the tide.
The latest developments occurred this Friday. According to trading notifications, ARK Invest has further increased its exposure to the crypto sector. The company purchased shares of crypto exchange Bullish, Bitcoin mining company BitMine, stablecoin issuer Circle, and online broker Robinhood.
ARK's contrarian moves stand in stark contrast to the prevailing market pessimism. The U.S. spot Bitcoin ETF market is experiencing one of its worst waves of capital outflows since launch.
On Friday alone, 12 ETF products recorded a combined net outflow of nearly $1 billion, the second-largest single-day outflow in history. Over the past month, as the price of Bitcoin has fallen about 30% from recent highs, these products have accumulated about $4 billion in net outflows.
Comprehensive Increase, Bullish as Key Bet
On Friday, ARK’s buying covered multiple targets.
The largest acquisition was focused on Bullish, with the ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW) jointly buying about $2 million worth of Bullish shares. That day, Bullish shares rose by 5.75%.
Additionally, ARK continued to accumulate positions in Bitcoin mining company BitMine, purchasing about $830,000 in shares through the same three funds. Although BitMine’s share price dipped slightly that day, it remained within its recent trading range.
The company also made small additional purchases of Circle and Robinhood. Trading records show ARK bought 3,529 shares of Circle, worth about $250,000; on the same day, Circle's share price rose more than 6%. At the same time, ARK also bought about $200,000 worth of new Robinhood shares.
Increasing Positions in Bitcoin ETF Against the Market
Against the background of large redemptions in the Bitcoin ETF market, ARK chose to swim against the current. On Friday, the company increased its Bitcoin ETF exposure by nearly $600,000, mainly through buying its own ARK 21Shares Bitcoin ETF (ARKB). Data shows the ARKF and ARKW funds jointly acquired more than 20,000 shares of ARKB.
This move highlights ARK’s divergence from the mainstream market sentiment. On that same day, the U.S. spot Bitcoin ETF market as a whole suffered nearly $1 billion in net outflows, making the week the weakest since February. ARK’s purchases suggest it believes the current price drop is a good opportunity to increase its holdings in Bitcoin, a core digital asset.
“Cathie Wood” Has Been Bottom Fishing All Week
Friday’s trades were not an isolated incident but a continuation of ARK’s ongoing 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 buying Coinbase stock, $9.9 million on BitMine, $9 million on Circle, and $9.65 million on Bullish. Additionally, it increased holdings in Nvidia by $16.8 million and Robinhood by $6.8 million.
Earlier, on Wednesday, ARK had already purchased approximately $16.8 million in Bullish shares, about $15 million in Circle shares, and around $7.6 million in BitMine shares through its ARKK, ARKF, and ARKW funds. This series of increases clearly shows that ARK is taking advantage of the market pullback to systematically strengthen its positions in the crypto and related technology companies that it has confidence in for long-term value.
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