Cathie Wood’s Ark Invest expands crypto stockpile with Bullish shares

Ark Invest has purchased an additional $10 million in Bullish shares, according to the fund’s daily trading report. The firm’s recent investment actions have revealed Cathie Wood’s interests in the crypto ecosystem, despite the ongoing market sell-off. 

The ongoing blood bath of the digital asset industry has not deterred Cathie Wood from investing in the ecosystem. Monday filings reveal that her investment fund, Ark Invest, has added more Bullish shares to its portfolio. The firm purchased an additional 277,000 Bullish shares for approximately $10.2 million.

Ark Invest purchases more Bullish shares as crypto sell-off continues

According to the fund’s daily trading report, Ark Invest completed the purchase across three of its exchange-traded funds (ETFs). The ARK Innovation ETF (ARKK) purchased 191,195 shares, the ARK Next Generation Internet ETF (ARKW) bought an additional 56,660 shares, and the ARK Fintech Innovation ETF (ARKF) added 29,208 shares of the crypto exchange.

However, Bullish stocks declined by 4.5%, closing at $36.75 on Monday, amid the ongoing series of purchases by the investment firm. Ark Invest’s investment in Bullish comes at a time when the exchange is about to report its earnings for the third quarter on November 19. 

The exchange reported $57 million in adjusted revenue in its earnings report for the second quarter, representing a $10 million decline from the $67 million in adjusted revenue reported for the same period last year. The exchange also reported a net income of $108.3 million in the second quarter, compared to a net loss of $116 million recorded in the same period last year.

A recent report by Cryptopolitan, dated November 18, revealed that Ark Invest analysis shows early Bitcoin whales are selling, but institutions are buying aggressively. Analysis reveals restructuring in the crypto investment ecosystem, characterized by a growing institutional influx and the exit of early adopters, who, according to the report, are taking profits.

Cathie Wood adjusts Ark Invest’s portfolio 

Ark Invest has continuously adjusted its exposure to the crypto ecosystem. The U.S.-based investment firm purchased additional Bullish shares last week, valued at $7.28 million. The company also purchased shares of stablecoin issuer Circle, valued at $15.6 million, alongside additional shares in the publicly traded miner BitMEX Technologies Inc., valued at $8.86 million.

Ark Invest also purchased more Bullish shares on November 4. Cryptopolitan reported that the investment firm bought more Bullish shares worth $12 million. The asset management firm bought 353,328 shares worth $30 million despite the stablecoin issuer’s shares dipping by double digits. Circle’s shares had dropped by 12% at the time of purchase, which was the second-largest drop after the shares declined by 16% on June 27.

Cathie Wood’s recent investment decisions have led the firm to significantly increase its crypto investments and reduce investments in other sectors. The firm sold 71,638 shares of Tesla in the first week of November despite holding Tesla as its primary investment since 2018. 

Last week, the investment firm sold 87,051 AMD shares for $22 million, two days after the chip manufacturer announced plans to expand its AI and data center plans. ARK Invest also offloaded 572,735 shares of Pinterest for about $15.6 million and 12,083 shares of Regeneron for approximately $8.2 million.

Cathie Wood explained that financial markets are struggling because liquidity is tightening. She compared Trump’s last presidential term, which she also described as having reduced liquidity, with a greater emphasis on 2017, 2018, and 2019. She concluded that reducing liquidity has a ripple effect on financial markets. 

A separate report by Cryptopolitan highlighted that investors have reduced inflows into equity funds following signals of a weakening labor market condition in October, as well as valuation concerns in the AI sector.

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