Cathie Wood’s ARK ETF would have bought 6.93 million shares of SPAC, which will merge with Circle

Cathie Wood’s Ark Invest would have acquired 6.93 million shares of special acquisition company SPAC, which is merging with Circle, for $70.6 million through the company’s exchange-traded fund (ETF) ARK Fintech Innovation. This purchase would represent a new position for the ETF, according to MarketWatch.

Ark Invest ETFs have a history of bold buying in the technology sector, as evidenced by their move to buy $80 million in Robinhood stock after prices fell in October 2021. Wood is also bullish on cryptocurrencies, although he has moved away from buying the first bitcoin futures ETF in the same month.

Circle is the main operator of USD Coin (USDC), currently the second largest stablecoin by market cap. Circle announced its intention to go public through a SPAC with Concord Acquisition Corp in July 2021 in a merger that would value the company at $4.5 billion.

Cathie Wood’s ARK ETF would have bought 6.93 million shares of SPAC, which will merge with Circle
Cathie Wood’s ARK ETF would have bought 6.93 million shares of SPAC, which will merge with Circle

The merger was originally scheduled to be completed by the end of the fourth quarter of 2021, with the company trading on the NYSE under the ticker “CRCL.”

The decision to go public came in response to regulators’ growing concerns about stablecoins. Despite this, the move has been widely welcomed by the cryptocurrency industry. Vladimir Vishnevskiy, co-founder of the Swiss wealth management company St. Gotthard Fund Management AG, stated that: “[USDC] It has been around since 2014 and is another example of how an established player is rewarded for its contribution to the ecosystem.

Stablecoins continue to face regulatory scrutiny in the United States as lawmakers question market transparency and reserve coverage. US lawmakers are attempting to introduce new cryptocurrency laws in the coming weeks.

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