- ARK Invest loaded up on Coinbase, Circle, and Block, signaling confidence in crypto despite Bitcoin’s recent sharp pullback.
- Cathie Wood cites a temporary liquidity crisis, not weakness, as the reason behind ARK’s strategic crypto acquisitions.
- ARK adjusted its 2030 Bitcoin forecast to $1.2M, highlighting growth potential amid stablecoin market expansion.
ARK Invest, led by Cathie Wood, has aggressively bought cryptocurrency-related stocks as markets remain volatile. On Tuesday, the firm invested millions across key digital finance firms, signaling confidence despite recent market pullbacks.
The purchases include $13.5 million in Block Inc. (SQ), $7.6 million in Circle (CRCL), $3.86 million in Coinbase (COIN), alongside $2.8 million in its ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA).
Additionally, the firm acquired $1.52 million in Bullish (BULL) and nearly $879,000 in Robinhood Markets (HOOD). The majority of these acquisitions went through the flagship ARK Innovation ETF (ARKK).
The timeframe coincides with Bitcoin’s recent decline from its peak price of over $126,000 to approximately $87,948. Instead of pointing to a fundamental flaw with cryptocurrency, Cathie Wood highlights a transient liquidity shortage. She underlined that these circumstances give long-term investors the chance to make purchases.
“Crypto faces a temporary liquidity crisis rather than fundamental weakness,” Wood said, highlighting ARK’s continued bullish stance. Besides macro uncertainty, thin market liquidity amplifies price swings. Moreover, Wood expects the Federal Reserve’s December 10 decision to act as a turning point for risk assets, including Bitcoin.
ARK’s Portfolio Moves Reflect Strategic Confidence
ARK’s trades reshaped ARKK’s holdings. Coinbase is now the fund’s fourth-largest holding at $391 million, Circle ranks 13th at $179 million, and Block comes in 22nd at $85.2 million. Block has risen 2.96% on the day despite a 20.54% monthly decline.
Circle fell 3.62% on Tuesday, down 51% over the past month, while Coinbase dipped 0.72% after a 30% monthly loss. Consequently, ARK appears to be buying the dip strategically, leveraging short-term volatility to position for long-term growth.
Wood adjusted ARK’s 2030 Bitcoin price projection from $1.5 million to $1.2 million, citing market expansion and stablecoin growth rather than reduced confidence. She suggested Bitcoin could eventually reach half of gold’s market capitalization, noting that crypto rebounds quickly once liquidity returns.
“Bitcoin typically leads recovery cycles when liquidity returns to markets,” Wood added, emphasizing its sensitivity to macro conditions. Additionally, upcoming employment data may influence investor sentiment and liquidity flow.
