Cathie Wood’s ARK Invest has increased its exposure to the cryptocurrency industry by purchasing approximately $9.4 million worth of Coinbase and Circle shares.
The investments were made on Aug. 3 through several ARK exchange-traded funds. The purchases came as both crypto-related stocks attempted to recover from recent declines and U.S. lawmakers continued discussing the future of the CLARITY Act.
ARK Invest Adds $8 Million in Coinbase Shares
ARK Invest bought a total of 54,776 Coinbase shares across three of its ETFs.
The ARK Innovation ETF made the largest purchase, adding 38,761 shares. Based on Coinbase’s Aug. 3 closing price of $146.50, the investment was worth approximately $5.68 million.
The ARK Next Generation Internet ETF purchased another 11,133 Coinbase shares, valued at around $1.63 million. Meanwhile, the ARK Fintech Innovation ETF added 4,882 shares worth approximately $715,000.
Together, the three funds spent nearly $8.02 million on Coinbase stock.
Coinbase ended the Aug. 3 trading session slightly higher, gaining 0.16%. ARK’s latest purchase suggests that the investment firm remains confident in the long-term potential of one of the largest publicly traded cryptocurrency exchanges in the United States.
Circle Purchases Bring Total Investment to $9.4 Million
ARK Invest also purchased shares of Circle Internet Group, the company behind the USDC stablecoin.
The ARK Innovation ETF added 17,910 Circle shares. At Circle’s Aug. 3 closing price of $60.35, the investment was valued at approximately $1.08 million.
The ARK Next Generation Internet ETF purchased an additional 5,160 shares worth around $311,000.
Combined, the two funds acquired 23,070 Circle shares for approximately $1.39 million. When added to the Coinbase purchases, ARK’s total investment in the two crypto-related companies reached roughly $9.42 million.
Circle shares declined 3.61% on Aug. 3 despite ARK’s purchase. However, the stock recovered to $62.56 on Aug. 4, representing an intraday increase of approximately 3.66%.
The company’s shares have remained under pressure after falling from previous levels above $130.
Circle Stock Attempts to Recover
Although Circle stock rebounded on Aug. 4, it continued to trade below several important technical levels.
The stock remained below its 20-day simple moving average of $63.73 and its 50-day moving average of $75.55. These levels may continue to act as resistance during any short-term recovery.
Circle’s Chaikin Money Flow reading improved to 0.03, indicating that capital inflows had become slightly positive.
A sustained move above $63.73 could improve the stock’s short-term outlook. However, the $60 price area remains an important support level that investors may continue to watch.
Coinbase Faces Resistance Near $157
Coinbase shares traded at approximately $149.12 on Aug. 4, gaining 1.78% after recovering from an intraday low of $145.60.
The rebound came after the stock recently tested support around $139.25. Buyers defended that level, but Coinbase still faces significant resistance before a stronger recovery can develop.
The first major barrier is located near the 78.6% Fibonacci retracement level of $156.99. A successful break above this area could allow the stock to move toward the next resistance level at approximately $170.93.
Coinbase’s relative strength index stood at 42.44, remaining below the neutral reading of 50. Its moving average convergence divergence indicator also continued to show bearish momentum, with the MACD line below the signal line.
These indicators suggest that selling pressure has weakened but has not completely disappeared.
A drop below $139.25 could increase the risk of further losses. On the other hand, a daily close above $156.99 could strengthen the recovery and open the door to a move toward $170.93.
CLARITY Act Remains Outside Senate Schedule
ARK’s purchases arrived as lawmakers continued debating the future of cryptocurrency market structure legislation in the United States.
The CLARITY Act is designed to establish clearer responsibilities for federal regulators overseeing digital assets. The proposed legislation could help define how agencies regulate cryptocurrency exchanges, tokens and other parts of the digital asset market.
Senate Majority Leader John Thune reportedly included crypto market structure legislation among the Senate’s remaining priorities before the August recess.
However, the CLARITY Act had not been added to the Senate’s official floor schedule at the time covered by the report. Lawmakers scheduled action on H.R. 6500, while no formal motion to begin considering H.R. 3633 had been announced.
The limited legislative window means the Senate may have little time to advance the bill before lawmakers leave for recess.
Greater regulatory clarity could have a direct impact on companies such as Coinbase and Circle. Both businesses operate in areas that could be significantly affected by changes to U.S. cryptocurrency regulations.
ARK Maintains Confidence in Crypto-Related Companies
The latest purchases show that ARK Invest continues to view market weakness as an opportunity to increase its positions in cryptocurrency-related companies.
Coinbase remains an important part of the U.S. crypto trading industry, while Circle plays a major role in the stablecoin market through USDC.
Both stocks continue to face technical resistance and broader market uncertainty. However, ARK’s $9.4 million investment indicates that the firm remains focused on their longer-term growth potential despite short-term price pressure.
Investors will now be watching whether Coinbase can move above $156.99, whether Circle can reclaim its 20-day moving average and whether the Senate takes meaningful action on the CLARITY Act.
