Cathie Wood’s Ark Invest adopted a high-conviction “buy the dip” strategy on Monday, significantly expanding its exposure to several major crypto-related stocks and funds despite a market-wide sell-off. According to its latest trade filing, the investment firm purchased approximately $56.4 million worth of shares across three of its exchange-traded funds, ARKK, ARKW, and ARKF, underscoring its long-term bullish outlook on the digital asset ecosystem.
The largest transactions focused on core players in the crypto and blockchain industry. Ark invested a substantial $17 million in BitMine shares, the firm known as the world’s largest Ethereum treasury company, followed closely by a $16.26 million purchase of Coinbase stock. The firm also committed $10.8 million to Circle Internet Group, the issuer of the USDC stablecoin, while adding $5.94 million worth of Block Inc. shares, $5.2 million of the Bullish crypto exchange, and $1.24 million into its own Ark-21Shares Bitcoin ETF.
This aggressive buying spree occurred on a day when all six purchased assets recorded notable declines. BitMine led the retreat, falling 11.22% to close the day at $30.95. The bellwether crypto exchange, Coinbase, dropped 6.37% to $250.42, and Circle dipped 9.60% to $75.46. Shares of Block and Bullish also fell by 1.13% and 2.55% respectively, with the Ark-21Shares Bitcoin ETF price declining by 4.91% during Monday’s trading session.
The stock market weakness in crypto-linked equities mirrored the broader digital asset decline. Bitcoin, the world’s largest cryptocurrency, was down 4.08% to $85,799, and Ether saw a 5.74% drop, trading at $2,931 as of late Monday. This concerted effort to buy into market weakness aligns with the overarching economic predictions of Ark Invest CEO Cathie Wood, who has recently stated her belief that the economy is showing signs of the “undercurrents of deflation” driven by new technological innovations. Earlier this month, Wood predicted that these factors could lead to a “real break” in inflation in the coming year, suggesting Ark is positioning its funds to benefit from a potential high-growth environment once current market turbulence subsides.
