ARK Invest spends $9.4 million on Coinbase and Circle shares

Cathie Wood's ARK Invest purchased approximately $9.4 million of Coinbase and Circle shares on August 3, and the US Senate is considering the next steps of the CLARITY bill

Abstract

ARK Invest purchased 54,776 shares of Coinbase shares through three ETFs, valued at approximately $8.02 million. Two ARK funds added 23,070 Circle shares worth approximately $1.39 million. Coinbase rebounded to $149.12, but bearish momentum and resistance around $157 remained. The Senate leadership has prioritized the CLARITY bill, but it has not yet scheduled a vote by the full chamber.

ARK Invest increases its holdings of Coinbase shares by US$8 million

According to the company's latest transaction disclosure, ARK Invest has diversified its purchases of Coinbase shares through three exchange-traded funds. Among them, ARK Innovation ETF bought 38,761 shares of Coinbase stock, the largest purchase volume among the three funds. Based on Coinbase's closing price of $146.50 on August 3, the transaction is worth approximately $5.68 million. ARK Next Generation Internet ETF increased its holdings by 11,133 shares, worth approximately US$1.63 million. ARK Fintech Innovation ETF bought 4,882 shares, worth approximately US$715,000. The three ETFs together received 54,776 shares of Coinbase stock, with a total value of approximately US$8.02 million.

Coinbase closed up slightly 0.16% in the August 3 trading session. The increase expands ARK's exposure to one of the largest listed cryptocurrency exchanges in the United States, while the broader digital asset market remains under pressure.

Circle stock purchase raises total ARK investment to US$9.4 million

ARK also increased its stake in stablecoin issuer Circle Internet Group through two of its funds. ARK Innovation ETF bought 17,910 shares of Circle stock, valued at approximately $1.08 million based on the stock's closing price of $60.35. The ARK Next Generation Internet ETF bought another 5,160 shares, worth approximately $311,000. These transactions brought ARK's total position in Circle to 23,070 shares, worth approximately $1.39 million. Coupled with Coinbase's transactions, ARK has invested a total of approximately US$9.42 million in these two cryptocurrency-related stocks.

Circle fell 3.61% on August 3 despite ARK buying. The stock has recently consolidated near lows after continuing to fall from above $130. The daily chart showed Circle rebounded to $62.56 on August 4, rising 3.66% on the day. But the stock is still below its 20-day simple moving average of $63.73 and well below its 50-day moving average of $75.55.

Circle's Cai Jin capital flow indicator rose to 0.03, indicating that capital inflows were slightly positive. If it continues to close above US$63.73, the short-term rebound is expected to strengthen; while the US$60 region remains the near-term support level.

Coinbase and Circle stocks face technical resistance

Coinbase traded at $149.12 on August 4, rising 1.78% after recovering from an intraday low of $145.60. The rebound came after recent testing of support for $139.25. However, the stock is still below the 78.6% Fibonacci retracement level of $156.99. This level was the first major obstacle to the broader recovery, with resistance thereafter at $170.93. Coinbase's Relative Strength Index is 42.44, which is below the neutral 50 level. Its moving average convergence/divergence indicator remains bearish, the MACD line is below the signal line, and the histogram is negative. These readings suggest that buyers have held on to recent lows but have not reversed overall bearish momentum. A break below $139.25 would weaken the current pattern, while a close above $156.99 could open up room for a move towards $170.93.

CLARITY bill still not on Senate agenda

The ARK purchase comes as Senate leadership continues to discuss the CLARITY bill. The bill intends to establish a division of labor framework for federal regulators in the U.S. digital asset market. Senate Majority Leader John Thune listed the structure of the cryptocurrency market as one of the Senate's remaining priorities before it adjourns in August. He said: "We still have a lot of things to do and we will stay here until it is done." Regarding the bill's prospects, he added: "I think the Market Structure Bill will get a vote. As for whether it can proceed smoothly, we will wait and see." Despite these statements, the CLARITY bill has not yet appeared on the formal Senate agenda. The Senate has scheduled a trial against H.R. 6500 takes action, but has not yet announced progress in H.R. Motion of 3633. Analyst Ted Pillows said if a closing debate motion is filed on Wednesday, the vote could be postponed until Friday at the earliest. That leaves lawmakers with a narrow procedural window before recess, while investors in Coinbase and Circle wait for further clarity on the bill's future. The CLARITY bill is still not on the Senate agenda, making it increasingly difficult for lawmakers to pass it before the August 10 recess. If Senate leadership waited until Wednesday to submit a closing debate motion (the procedural steps needed to move the bill forward), then the earliest...