For a company that prides itself on the stablecoin it developed and manages, Circle Internet Group's (NYSE: CRCL) stock has been anything but stable lately. The recent slump in the shares has clearly appealed to the contrarian instincts of top institutional investor Cathie Wood and her Ark Invest team, as they loaded up on Circle shares last week.
These buys totaled $14 million, a considerable sum. Let's take a closer look at this and identify one very attractive quality about Circle stock that's sustaining its bulls.
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Last Tuesday, Ark Invest added to its existing pile of Circle stock with several new buys totaling 220,012 shares, valued at roughly $13.9 million.
These purchases were spread among three Ark exchange-traded funds (ETFs), with the Ark Innovation ETF taking 159,517 shares, the Ark Next Generation ETF gaining 42,400, and the Ark Blockchain & Fintech Innovation ETF absorbing 18,095.
Ark Invest already held Circle positions in the three ETFs. As of market close on Friday, July 17, with the latest additions, these had grown to:
Wood and her team are placing what some would consider a risky bet with Circle.
The company's stock has been in the doldrums lately for understandable reasons — cryptocurrencies have fallen out of favor with investors, and that gloomy sentiment has even seeped into stablecoins (like Circle's USDC), which are pegged to fiat currencies.
On top of that, a formidable consortium of large companies, including Visa and — somewhat oddly, given that it's the primary manager of the Circle Reserve Fund — BlackRock, is teaming up on a stablecoin called Open USD that will rival USDC. It's slated for official public launch in the fall.
But recently, a development with Circle has made it significantly more competitive.
Earlier this month, Circle won approval from U.S. federal regulator, the Office of the Comptroller of the Currency (OCC), to establish a national trust bank. For those unfamiliar with banking arcana, a national trust bank is an institution that focuses squarely on managing and safekeeping financial assets.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
