ARK funded part of the shift by trimming exposure to Chinese technology by selling positions in Alibaba and Baidu.
- ARK Invest added more shares of Coinbase, Circle, and Bullish across its flagship ETFs on Monday.
- The buying comes days after ARK resumed accumulating the same names.
- The purchases align with Cathie Wood's bullish stance on US crypto regulation, including her support for the CLARITY Act.
ARK Invest extended its buying spree in crypto-linked equities, adding Coinbase, Circle and Bullish while cutting Alibaba and Baidu, as Cathie Wood continues to position for U.S. crypto policy tailwinds.
Cathie Wood Doubles Down On Crypto
According to the firm's daily trade disclosures, the purchases spanned the flagship ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). In ARKK, the firm added 66,754 shares of Circle, 122,108 shares of Bullish and 37,153 shares of Coinbase, along with a smaller 2,943-share purchase of brokerage Robinhood (HOOD), which derives part of its revenue from crypto trading.
The buying marks the second batch of crypto-stock additions in days. ARK resumed adding crypto-linked equities on Friday, buying the same three names, Coinbase, Circle and Bullish, across the same three funds after a stretch of net selling.
Monday's trades signaled a sustained rotation back into the sector rather than a one-off.
China Tech Rotation Makes Way For Crypto
ARK paired the crypto buying with a pullback from Chinese tech. The firm sold Alibaba (BABA) across all three of ARKK, ARKW, and ARKF, and trimmed Baidu (BIDU) in ARKW.
In the same session, ARK added a range of artificial intelligence (AI)- related infrastructure and technology companies, including CoreWeave (CRWV), Palantir (PLTR), Cerebras (CBRS), X-Energy (XE), Snowflake (SNOW), and Amazon (AMZN), to the flagship fund.
ARKK’s price, the firm’s largest exchange-traded fund (ETF), was trading flat during pre-market trade on Tuesday. On Stocktwits, the retail sentiment around ARKK remained in the ‘neutral’ zone, while chatter around it stayed at ‘high’ levels over the past day.
The Regulatory Catalyst: Wood's CLARITY Act Stance
The buying tracks ARK founder Cathie Wood's broader stance on crypto policy.
The CLARITY Act would give Coinbase, Circle and Bullish long-sought regulatory certainty by defining when tokens are commodities rather than securities and shifting much crypto oversight to the CFTC, potentially unlocking institutional demand for exchanges and stablecoin issuers.
Her firm has repeatedly bought crypto-related stocks during volatility tied to the CLARITY Act, the digital-asset market-structure bill now before the Senate, which Wood has steadily supported as a chance for the sector to flourish.
Wood backed the bill's contested Section 604, a developer-protection provision, calling it "thoughtful and nuanced" and arguing it would help digital-asset innovation flourish in the US "instead of pushing it abroad." Republicans are targeting a Senate floor vote on the legislation on July 17, after lawmakers return from the July 4 recess.
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