ARK Invest Dumps $146.3M More Circle Shares After Meteoric 670% IPO Surge

TL;DR

• ARK Invest sells $146.3 million in Circle (CRCL) shares just two weeks after its record-setting IPO.
  
• The firm rebalances into AMD, Shopify, and TSMC across multiple ETFs.
  
• Circle’s USDC stablecoin is seeing rising adoption, including new use cases in regulated U.S. futures markets and e-commerce.
  

ARK Unloads Circle Shares Following Historic Surge

ARK Invest, led by Cathie Wood, has liquidated another large tranche of its holdings in Circle (CRCL) — the issuer behind the USDC stablecoin — just two weeks after its explosive IPO. The sale, valued at approximately $146.3 million, underscores ARK’s approach to profit-taking amid surging valuations and reflects a rotation strategy favoring chipmakers and e-commerce firms.

The move follows a 670% rally in Circle’s stock price, which debuted at $31 on June 5 and closed at $240.28 by June 20. ARK’s flagship Innovation ETF (ARKK) accounted for the largest share of the divestment, reducing its Circle exposure by 490,549 shares (around 1.8% of the portfolio). Its Next Generation Internet ETF (ARKW) and Fintech Innovation ETF (ARKF) also cut back, selling 75,018 and 43,608 shares, respectively.

ARK Invest Circle Sales Breakdown

IPO of the Decade: Circle’s Meteoric Public Debut

Circle’s IPO has quickly become one of the most talked-about listings in U.S. capital markets history. It marks the most explosive IPO for any U.S. firm raising over $500 million since 1980. The stock’s price action was fueled by:

• Regulatory clarity from the passage of the GENIUS Act, which introduces structured rules for stablecoins.
  
• Increased institutional appetite for crypto infrastructure stocks with stable revenue models.
  
• The strategic importance of USDC in a future where regulated stablecoins serve as collateral in derivatives markets and e-commerce.
  

Despite this momentum, ARK’s profit-taking strategy aligns with its historical behavior of trimming holdings after rapid rallies.

USDC Adoption Gathers Momentum

While ARK is cashing in on Circle’s stock gains, the underlying asset — USDC — is gaining institutional traction. As of June 21:

• USDC’s market capitalization stands at $61.26 billion, making it the second-largest stablecoin after Tether’s USDT.
  
• Coinbase Derivatives has announced it is working with Nodal Clear to allow USDC as collateral in regulated U.S. futures markets.
  
• Shopify is integrating USDC payments via Base, enhancing its practical use in retail transactions.
  

These developments reflect a gradual maturation of stablecoins from speculative tools to regulated financial instruments embedded in core financial infrastructure.

ARK Rotates Into Chipmakers and E-Commerce

While ARK trims Circle, it’s not pulling out of tech altogether. The firm is diversifying its exposure by rotating capital into:

• Advanced Micro Devices (AMD) — riding on the AI chip demand wave.
  
• Taiwan Semiconductor Manufacturing Company (TSMC) — a global leader in chip production and crucial to Nvidia’s supply chain.
  
• Shopify (SHOP) — gaining traction in both Web2 and Web3 commerce layers.
  

This suggests a broader ARK view that traditional tech is undervalued relative to speculative crypto assets, at least in the short term.

Technical Perspective: Circle’s Valuation Under the Microscope

Circle’s 670% rally has sparked valuation concerns among some institutional analysts. At $240 per share, CRCL trades at a P/S ratio well above sector norms, especially when compared to fintech peers like:

• Block Inc. (SQ): 4.8x P/S
  
• PayPal (PYPL): 3.2x P/S
  
• Coinbase (COIN): 5.9x P/S
  

While Circle’s earnings outlook is promising, particularly with stablecoin revenues surging, such multiples may not be sustainable if regulatory conditions change or if USDC adoption slows.

Market Reaction and Forward Guidance

The market response to ARK’s sell-off has been muted, with CRCL showing resilience around the $240 level as of Friday. Analysts attribute this to the fact that institutional demand for exposure to stablecoin infrastructure remains strong. If USDC continues integrating across DeFi, retail, and derivatives, then long-term investors may still find value even at current levels.

However, short-term traders may take cues from ARK’s timing — particularly if broader market conditions turn risk-off following recent geopolitical shocks.

Conclusion: Stablecoin Strength vs. Strategic Rotation

ARK’s $146.3 million Circle sell-off reflects a classic momentum rebalancing strategy, not a fundamental rejection of stablecoins or Circle’s potential. The firm is locking in gains while spreading exposure into sectors poised for AI-driven growth.

Meanwhile, Circle’s ecosystem continues to expand, with USDC rapidly climbing in both market cap and use case relevance. Whether this is a top signal or just a tactical move, Circle’s transformation from a crypto-native firm to a Wall Street favorite has already reshaped the stablecoin investment narrative.