Ark Invest Increases Circle Stake With $14 Million Purchase
The buy follows a recent OCC national trust bank approval that could let Circle hold USDC reserves directly and raise questions about its revenue if a rival stablecoin captures reserve yields.
Overview
- Ark Invest disclosed that it bought 220,012 Circle shares on Tuesday, July 15, splitting the purchase across three ETFs for roughly $13.9–$14 million.
- The new buys lift Ark’s combined exposure to Circle to about $236 million across the ARK Innovation, ARK Next Generation Internet, and ARK Blockchain & Fintech ETFs.
- Circle obtained approval from the Office of the Comptroller of the Currency earlier this month to form a national trust bank, a change that would let it potentially hold the U.S. Treasury securities that back USDC.
- Reports say a consortium including Visa and BlackRock is planning a rival stablecoin called Open USD that is expected to launch publicly this fall, a development that could shift who earns the interest on reserve assets.
- Circle’s shares have fallen sharply in recent sessions and trade below key moving averages, a weakness that raises investor concern about how changes to reserve management and rising competition could affect the company’s revenue and institutional adoption.