Circle, Rinse, Repeat: ARK Adds $13.9M in CRCL While Analysts Tap the Brakes 🚦

ARK Invest purchased 220,000 additional shares of Circle Internet Group (CRCL) on Tuesday across three of its actively managed exchange-traded funds, according to the firm's daily trade disclosure reviewed by Cointelegraph. Based on Circle's Tuesday closing price of $63.22 on the New York Stock Exchange, the buy was worth approximately $13.9 million. Circle shares were down about 22% year-to-date and roughly 76% below their post-initial public offering (IPO) peak.

The latest purchase brought ARK's disclosed July acquisitions of Circle shares to 725,517, following buys of 287,609 shares on July 1 and 217,896 shares on July 9. The disclosures show ARK has consistently added to its Circle position across its flagship funds despite the stock's prolonged decline. As of Wednesday, Circle accounted for 4.37% of the ARK Fintech Innovation ETF (ARKF), making it the fund's seventh-largest holding, with the position valued at about $33 million. Circle also represented 3.35% of the ARK Innovation ETF (ARKK), where it ranked as the fund's ninth-largest holding, worth about $218 million.

ARK's purchase came as analysts reassessed Circle's outlook following the sharp decline in the company's stock price. Digital asset research platform 10x Research said it no longer considers Circle a buy after the stock fell back below $80. In a report published Tuesday, the firm said it previously viewed CRCL as attractive below that level but now believes Circle's fundamentals have "meaningfully deteriorated." The report cited slower USDC activity, including a decline in active addresses, as a concern.

USDC's market capitalization has declined roughly 3% year-to-date to $73 billion, according to CoinGecko. Despite the recent decline, the stablecoin's market capitalization remains about 17% higher than a year ago. 10x Research added that a bullish case for Circle remains,