Ark Invest, an investment management company led by Cathie Wood, has sold more than $50 million in its holdings at Circle Internet Group (CRCL), the publisher of USDC Stablecoin.
On June 16, Ark dumped 342,658 CRCL stocks, about $51.7 million, according to Yahoo Finance data.
The sale affected three parts: ARK’s Exchange Trade Fund (ETF). According to the company’s trading files acquired by Cryptoslate, ARK Innovation ETF (ARKK) offloaded 196,367 shares. Meanwhile, ARK Next Generation Internet ETF (ARKW) sold 92,310 shares, while ARK Fintech Innovation ETF (ARKF) classified 53,981 shares.
Circle’s stock has experienced a notable rally since its initial public offering (IPO) earlier this month. Stocks are up about 400% to over $150, boosting the company’s valuation by around $36 billion, according to data from Yahoo Finance.
Market observers have linked this surge to the dominant role of circles in the stubcoin industry. The company’s USDC Stablecoin is the second largest in the sector with a market capitalization of over $61 billion.
They believe that the Jeremy Allaire-led company is benefiting from growing attention to digital dollar assets amid ongoing efforts to regulate the US Stablecoin sector.
Haze raises a red flag over a circle
But not everyone is celebrating the rise of the circle. Maelstrom’s Chief Investment Officer Arthur Hayes has expressed strong concern about the hype surrounding the company’s valuation.
He said:
“To be clear, the circle is badly overvalued, but prices continue to rise.”
According to him, the success of the circle’s IPO can cause a wave of looks like Stablecoin projects with a flimsy business model. He said the current excitement in the sector may reflect a lead-up to the Terrausd collapse, especially when US regulations are light.
Hayes noted that future issuers will leverage market momentum and rely on traditional financial qualifications to raise funds even without a solid basic.
According to him:
“A highly bankable charismatic individual will take the stage, spit all sorts of nonsense, go back and forth, his (probably male) hands and convince why the leveraged dog speed he sells is trying to corner the trillion dollar stablecoin total addressable market (TAM).”
Hayes continued that this imitation avalanche eventually appeared in the bubble, causing the market to collapse. He said:
“The bubble comes after launching an issuer in the public market that separates billions of capital using a combination of financial engineering, leverage and incredible showmanship.”
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