TLDR
- ARK Invest bought $21.2 million of Bullish shares and $16.2 million of Robinhood shares on Tuesday
- This marks ARK’s third consecutive day purchasing Robinhood stock after buying $14 million Monday and $9 million Friday
- Both stocks fell over 6% on Tuesday despite ARK’s purchases, with broader crypto stocks declining
- ARK previously bought 2.53 million Bullish shares worth $172 million across three ETFs last week
- Crypto-related stocks dropped broadly with Coinbase down 5.82% and Galaxy Digital falling 10.06%
Cathie Wood’s ARK Invest continued its buying streak in crypto-related stocks on Tuesday. The investment firm purchased $37.4 million worth of shares in Bullish and Robinhood Markets through its flagship ARK Innovation ETF.
ARK bought 356,346 shares of Bullish at $59.51 per share, totaling $21.2 million. The firm also acquired 150,908 shares of Robinhood Markets at $107.50 per share, worth $16.2 million.
The Tuesday purchases came during a difficult trading session for crypto-exposed stocks. Bullish closed down 6.09% at $59.51 and dropped another 3.24% in after-hours trading.
Robinhood fell 6.54% to $107.50 during regular trading hours. The stock declined a further 1.23% after the market close.
ARK’s Growing Positions
ARK Innovation ETF now holds 1,165,397 Bullish shares with a total value of roughly $73.85 million. This latest investment builds on ARK’s earlier allocation of more than 2.5 million shares across three ETFs.
The firm made its initial Bullish purchase on the company’s first day of trading. That position was valued at over $170 million at the time of purchase.
Tuesday marked ARK’s third consecutive day of Robinhood purchases. The firm bought $14 million worth of shares on Monday and $9 million on Friday.
ARK previously dumped multiple batches of Robinhood shares last year. The sales were made to comply with Rule 12d3-1, which bars ETFs from holding more than 5% of their assets in securities tied to registered brokers or advisers.
Broader Market Weakness
Other crypto stocks also faced selling pressure on Tuesday. Coinbase Global dropped 5.82% while Galaxy Digital lost 10.06% of its value.
MicroStrategy fell 7.43% and Circle slipped 4.49%. The weakness in crypto stocks came as the broader Nasdaq Composite declined 1.46% on Tuesday.
According to CNBC, investors pulled back from crypto stocks after their boost last week during rate-cut optimism. Attention now shifts to the US Federal Reserve’s Jackson Hole symposium.
Bullish operates as a crypto exchange and is the parent company of CoinDesk. The Cayman Islands-based company recently made its debut on the New York Stock Exchange.
The company priced its IPO above earlier expectations of $32-$33 per share. Bullish raised $1.1 billion through the sale of 30 million shares at $37 per share.
Bullish ended its first trading session up 83.8% from its IPO price. Shares jumped another 11.2% in after-hours trading on its debut day.
The stock opened at $90 and hit an intraday high of $118 on its first day. This represented more than 215% above the IPO price before falling back.
Robinhood has expanded its crypto offerings in recent years. The platform allows users to trade both traditional stocks and cryptocurrencies, making it attractive to funds seeking digital asset exposure.
