Ark Invest purchased $16.34 million worth of Circle shares on Tuesday, adding 161,513 shares across its ETFs as the stock dropped sharply.
Circle shares fell 20% during the session to close at $101.17, with the decline linked to regulatory concerns, competitive pressures, and operational scrutiny.
The buying appears to be a dip-buying strategy, with Ark increasing exposure despite near-term headwinds facing the USDC issuer.
Draft provisions in the proposed U.S. Clarity Act signalled a potential ban on yield payments for stablecoin holders, a move analysts said could negatively impact Circle’s core business model.
Separately, onchain investigator ZachXBT reported that Circle froze USDC balances across 16 wallets tied to businesses involved in a U.S. civil case, highlighting ongoing centralisation risks.
Competition also intensified as rival Tether announced plans for a full financial audit with a Big Four accounting firm, potentially challenging Circle’s transparency advantage.
Following the sell-off, Circle shares rose 1.5% in after-hours trading, while Ark trimmed exposure to Bullish, selling $1.53 million worth of shares as part of broader portfolio rebalancing.