ARK Next Generation Internet ETF Spends $16.3M on 161,513 Circle Shares
ARK Invest’s Next Generation Internet ETF purchased 161,513 Circle shares for $16.3 million at an average price of $101.17 after Cathie Wood sold earlier. The move counters proposed Senate CLARITY bill threats to stablecoin yields, underscoring Wood’s contrarian strategy.
1. ETF Purchase Details
ARK Next Generation Internet ETF acquired 161,513 Circle shares at an average price of $101.17, totaling $16.3 million, during the stock’s sharp decline this week.
2. Legislative Threat to Stablecoin Yields
The proposed Senate CLARITY bill threatens to ban interest-like returns on stablecoin balances, endangering Circle’s revenue from USDC reserve yields.
3. Contrarian Trade Strategy
Cathie Wood executed a textbook contrarian move by selling Circle shares before the drop and buying back at lower prices, aiming to capitalize on market overreaction.