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

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

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

Ark Invest ETFs have a history of bold buys within the tech sector, as indicated by their move to buy $80 million worth of Robinhood stock after prices plunged in October 2021. Wood is also bullish on crypto, despite despite having gone from buying the first Bitcoin futures ETF that same month.

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

The merger was originally planned 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 as a response to growing concern from regulators about stablecoins. Despite this, the move was generally applauded by the cryptocurrency industry. Vladimir Vishnevskiy, co-founder of the Swiss wealth management company St. Gotthard Fund Management AG, noted the following: “[USDC] It’s been around since 2014, and it’s another example of an established player being rewarded for their contribution to the ecosystem.

Stablecoins continue to come under regulatory scrutiny in the United States, as lawmakers question market transparency and reserve backing. US lawmakers are attempting to introduce new cryptocurrency legislation in the coming weeks.

Read:  MimbleWimble magic finally kicks in on Litecoin