The cryptocurrency market has plummeted, and "Cathie Wood" has bottom-fished

In the face of a significant pullback in the cryptocurrency market and wavering investor confidence, ARK Invest, led by Cathie Wood, is going against the trend.

The latest development occurred this Friday, when ARK Invest further increased its exposure to the crypto sector according to trading notifications. The company purchased shares of the cryptocurrency exchange Bullish, Bitcoin mining company BitMine, stablecoin issuer Circle, and online brokerage Robinhood.

ARK's counter-cyclical moves sharply contrast with the current pessimistic sentiment in the market. The U.S. Bitcoin spot ETF market is experiencing one of the most severe outflows of funds since its launch.

On Friday alone, 12 ETF products recorded nearly $1 billion in net outflows, marking the second-largest single-day outflow in history. Over the past month, as Bitcoin prices have fallen about 30% from recent highs, the cumulative net outflow for these products has reached approximately $4 billion.

Comprehensive Increase, Focus on Bullish

On Friday, ARK's buying actions covered multiple targets.

The largest acquisition was aimed at Bullish, with the ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW) collectively purchasing approximately $2 million worth of Bullish shares. On that day, Bullish's stock price rose by 5.75%.

Additionally, ARK continued to accumulate positions in Bitcoin mining company BitMine, buying approximately $830,000 worth of shares through the aforementioned three funds. Although BitMine's stock price slightly declined that day, it remained within its recent trading range.

The company also made small increases in its holdings of Circle and Robinhood. Trading records show that ARK purchased 3,529 shares of Circle stock, valued at approximately $250,000, with Circle's stock price rising over 6% that day. Meanwhile, ARK also bought approximately $200,000 worth of new shares of Robinhood.

Increasing Bitcoin ETF Holdings Against the Trend

Against the backdrop of large-scale redemptions in the Bitcoin ETF market, ARK chose to swim upstream. On Friday, the company increased its Bitcoin ETF exposure by nearly $600,000, primarily through purchases of its own ARK 21Shares Bitcoin ETF (ARKB) Data shows that ARKF and ARKW have collectively increased their holdings by more than 20,000 shares of ARKB.

This action highlights ARK's divergence from mainstream market sentiment. On the same day, the U.S. Bitcoin spot ETF market experienced nearly $1 billion in net outflows, making it the weakest week since February. ARK's buying behavior indicates that it views the current price drop as a good opportunity to increase its holdings in Bitcoin, a core digital asset.

"Cathie Wood" has been bottom-fishing for a week

Friday's trading was not an isolated event, but a continuation of ARK's series of sustained buying operations throughout the week.

According to trading records, Thursday was ARK's largest acquisition day of the week. The company spent $10.1 million to buy Coinbase shares, $9.9 million to buy BitMine, $9 million to buy Circle, and $9.65 million to buy Bullish. Additionally, it increased its holdings by $16.8 million in NVIDIA and $6.8 million in Robinhood.

Earlier on Wednesday, ARK had already purchased approximately $16.8 million in Bullish shares, about $15 million in Circle shares, and about $7.6 million in BitMine shares through its ARKK, ARKF, and ARKW funds. This series of increasing actions clearly indicates that ARK is systematically leveraging the market pullback to enhance its long-term value in cryptocurrencies and related technology companies