Coinbase Gains Favor as Ark Invest Rebalances Portfolio with Major Buys

Cathie Wood's Ark Invest has made significant moves in its portfolio, selling off Circle shares worth $109.6 million while increasing its stakes in crypto-friendly platforms like Coinbase and Robinhood. This strategic shift highlights growing confidence in trading platforms that support digital assets, particularly Coinbase, as the firm capitalizes on market opportunities following Circle's post-IPO surge.

Ark Invest Shifts Holdings: Dumps Circle, Buys Robinhood and Coinbase

Cathie Wood's Ark Invest continues its strategic portfolio rebalancing, offloading $109.6 million worth of Circle shares across its ETFs while making significant purchases in crypto-friendly trading platforms. The firm disposed of 415,855 Circle shares following last week's 609,175-share sale, capitalizing on the stablecoin issuer's 7.5x surge since its recent IPO.

Simultaneously, Ark deployed fresh capital into market leaders, acquiring $1.3 million in Coinbase (COIN) and $24.4 million in Robinhood (HOOD) shares. This pivot reflects institutional confidence in crypto infrastructure plays despite recent profit-taking from Circle's parabolic run.

Ethereum Price Surges to $2,434 Amid Geopolitical Calm and Whale Accumulation

Ethereum led a crypto market rally, jumping 9% to $2,434 after former U.S. President Donald Trump brokered a ceasefire between Israel and Iran. The geopolitical de-escalation revived risk appetite, with ETH bouncing from $2,230 to its current $2,420 level.

Whale activity fueled the momentum. Institutional buyers absorbed $265 million worth of ETH during last week's dip, including one entity acquiring 47,070 ETH ($113 million) via OTC deals with Wintermute and Coinbase. This brings their 11-day accumulation to 132,535 ETH ($333.78 million) at an average $2,518 price.

Network fundamentals strengthened the case. ethereum has added approximately one million new addresses weekly since mid-May - a 50% year-over-year increase in network growth. The sustained organic expansion underscores Ethereum's enduring appeal despite macroeconomic crosscurrents.

Compass Point Initiates Coverage on Circle Internet (CRCL) with Hold Rating Amid Valuation Concerns

Compass Point has assigned Circle Internet (CRCL), the issuer of the USDC stablecoin, a Hold rating with a $205 price target. Analyst Ed Engel highlighted the stock's high valuation as a key concern, noting that bullish long-term assumptions are already priced in. Despite this, CRCL has surged 750% from its IPO price of $31 to $263.45, driven by Optimism around the proposed GENIUS Act stablecoin legislation.

Circle's USDC reserves generate interest revenue, 50% of which flows to Coinbase Global (COIN). Compass Point argues stablecoins like USDC could disrupt traditional finance by bypassing banks and payment networks. The firm views CRCL as a pure-play exposure to this emerging sector, though current valuations leave little room for upside.