Cathie Wood high-level reduces Circle, crazy cash out billions of dollars in profit in three weeks! Ark Investment precisely trap now attracts follow

Gate News, according to Bloomberg, the well-known investor 'Wood Sister' Cathie Wood's Ark Investment Management recently staged a wonderful 'short-term trading' operation, widely followed by the market. At the time when Circle Internet Financial (Stable Coin USDC issuance business) soared by over 600% after its listing, Ark decisively took action, selling approximately 1.5 million shares of Circle stock in just a few days, trapping up to $333 million (Bloomberg estimate).

Accurate layout, tripled in three weeks! Ark quickly profit taking

• Core Event: Cathy Wood reduced Circle's shares, and Ark Investment sold at a high trap.
• Key Data: The current amount of trap is about $3.33 billion, involving three ETFs, ARKK, ARKW, ARKF.
• Timeline: On the first day of listing on Circle, three ETFs under Ark invested approximately USD 373 million to purchase 4.5 million shares. Just three weeks later, as the stock price soared, Ark initiated selling.
• Quick Overview: Thanks to the "rocket-like" rise in Circle's stock price, Ark is likely to have recouped most of its initial investment costs through this sell-off, achieving significant short-term profits. Bloomberg Intelligence ETF analyst Athanasios Psarofagis pointed out, "Ark doubled its investment in less than a month. It is not uncommon for them to sell when the stock price rises."

Reduction details exposed, still an important shareholder of Gate

• Flagship Fund Dumping: The flagship fund ARK Innovation ETF ARKK with assets reaching $6.5 billion has the largest selling force, selling 1.2 million shares.
• Other funds follow: ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) also synchronized the selling operation.
• Shareholding Position: Despite a significant reduction, Bloomberg compiled data shows that Ark Investment remains the eighth largest shareholder of Circle.

Market reaction and analyst interpretation

• Stock price fluctuations: Affected by news such as Ark's reduction of holdings, Circle's stock price once plunged 16% during Tuesday's trading.
• Strategy Interpretation: Todd Sohn, senior ETF analyst at Strategas Research, said, "Taking profits is a natural part of the Ark investment strategy. What's more worth following is whether they will liquidate their positions, which will raise concerns similar to the Nvidia incident." (Note: Ark liquidated its position in Nvidia before the AI boom in 2023, missing out on a significant rise thereafter)
• Current Status of Circle: As the second largest market share stablecoin issuance provider, Circle has performed phenomenally since its listing earlier this month. Currently valued at approximately 500 billion US dollars, it has joined the ranks of top financial technology companies like Robinhood, becoming one of the most prominent cryptocurrency-related IPOs.

Performance and Investor Sentiment of Ark Fund

• Bright performance this year: Since April, the performance of three ETFs under Ark Investment has significantly outperformed the S&P 500 index by at least six times.
• Heavy stock Tesla meritorious service: The flagship fund ARKK's top heavy stock Tesla (TSLA) outperformed the S&P 500 index by more than three times during the same period, despite Wood's extremely optimistic expectations for the stock's 5-year target price of $2600.
• Capital outflows hidden concerns: Compared to the peak of 2021 when tens of billions of dollars flowed in monthly, retail investors' enthusiasm for Ark funds has cooled significantly. Bloomberg data shows that ARKK has experienced seven consecutive weeks of outflows so far this year, with fluctuating flows in ARKW and ARKF as well.

Investor Alert: Cathy Wood's 'buy high and sell quickly' operation on Circle once again demonstrates her flexible trading strategy. For investors following the concept of cryptocurrency coins and the latest trends in Ark Investment:

1. Short-term explosive rise implies pullback risk: The astonishing rise on Circle has accumulated huge profits, and Ark's reduction may become a catalyst for stock price adjustment.
2. Ark operations are worth tracking but not absolute signals: Ark's band operations are part of its strategy and need to be combined with overall position changes (such as whether to liquidate) and fundamental analysis judgments.
3. Concept stocks of volatile cryptocurrency coins: Companies entering this field often experience large fluctuations in stock prices, requiring investors to have a high risk tolerance.

Is this a smart decision to secure the bag, or a short-sighted move that may repeat the mistakes of NVIDIA? Perhaps only time will tell us the answer.