From Yahoo Finance: 2025-06-10 08:00:00

ARK Invest saw significant gains after its investment in Circle Internet Group (CRCL), the firm behind USDC stablecoin, which soared after its IPO. ARK acquired 4.5 million shares, potentially earning over $500 million. This boosted ARK’s funds, with ARKK jumping 8.5% and ARKW and ARKF also seeing gains.

Circle’s success highlights the benefits of active ETFs, allowing participation in hot offerings like this. However, Circle’s rapid quadrupling in value post-IPO is unusual. The excitement around Circle stems from its role in stablecoins, with USDC being the second-largest globally, valued over $60 billion.

Circle’s revenue comes from holding reserves behind USDC and investing in interest-bearing assets, benefiting from high interest rates. This success has led to speculation about a potential comeback for Cathie Wood’s ETFs. ARKK is up 9% YTD, outperforming the Invesco QQQ Trust, while ARKW and ARKF have gained over 20% each in 2025.

Despite recent gains, ARK’s longer-term performance remains challenged. ARKK is down 4% over the past five years, while QQQ has seen a 123% increase during the same period. It remains to be seen if this Circle win marks a true ARK resurgence or a rare success for the active ETF manager.

Read more: Is Cathie Wood Back After ARK’s $500M Circle Win?