Cathie Wood’s Ark Invest reportedly purchased 6.93 million shares of the special acquisition acquisition company (SPAC) that merged with Circle for $70.6 million through the company’s ARK Fintech Innovation exchange-traded fund (ETF). This purchase will represent a new position in the ETF, according to to the market to observe.
Ark Invest’s ETFs have a history of bold buying in the tech sector, as evidenced by their buying moves $80M in Robinhood stock After a price pullback in October 2021.Despite the past, Wood is also bullish on cryptocurrencies Buy the first Bitcoin futures ETF same month.
Circle is the main operator of USD Coin (USD/USD), which is currently the second-largest stablecoin in terms of market capitalization. Circle announced its intention to go public in July 2021 via a SPAC with Concord Acquisition Corp, which would value the company at $4.5 billion.
The merger was originally scheduled to close by the end of the fourth quarter of 2021, with the company listed on the New York Stock Exchange under the ticker symbol “CRCL.”
The move to list comes in response to growing concerns about stablecoins from regulators.Anyway, the move is Generally well received by the crypto industry. Vladimir Vishnevskiy, co-founder of Swiss wealth management firm St. Gotthard Fund Management AG, noted and said; “[USDC] It’s been around since 2014 and is another example of established players being rewarded for their commitment to the ecosystem.
Stablecoins are still under regulatory scrutiny in the U.S. as lawmakers question the market’s transparency and reserve backing.U.S. lawmakers are currently seeking Introducing new legislation on encryption in the next few weeks.