Ark Invest, the investment management company led by Cathie Wood, has sold more than $ 50 million of its interests in Circle Internet Group (CRCL), the issuent of the USDC Stablecoin.
On June 16, Ark Dumped 342,658 CRCL shares with a value of approximately $ 51.7 million, based on the closing price of the day of $ 151.06, according to Yahoo Finance facts.
The disinvestment influenced three of Ark’s Exchange-Trade funds (ETFs). According to the trade file of the company obtained by CryptoSlateArk Innovation ETF (Arkk) has made 196,367 shares. In the meantime, the Ark Next Generation Internet ETF (ArkW) sold 92,310 shares, and the Ark Fintech Innovation ETF (Arkf) separated with 53,981 shares.
The shares of Circle have experienced a remarkable rally earlier this month since its first public offer (IPO). According to Yahoo Finance data, the share has risen by almost 400% to more than $ 150, so that the appreciation of the company pushed around $ 36 billion.
Market observers have linked this increase to the dominant role of Circle in the Stablecoin industry. The company’s USDC Stablecoin is the second largest in the sector with a market capitalization of more than $ 61 billion.
They believe that the company led by Jeremy Allaire has benefited from more attention to digital dollar assets in the midst of continuous efforts to regulate the stablecoin sector in the United States.
Hayes increases red flags over the circle
However, not everyone celebrates the rise of Circle. Arthur Hayes, Chief Investment Officer at Maelstrom, has expressed strong concern about the hype regarding the appreciation of the company.
He stated:
“To be clear, Circle is roughly overvalued, but the price will continue to float.”
According to him, the IPO success of Circle could activate a wave of Lookalike Stablecoin projects with thin business models. He said that the current excitement of the sector could reflect the run -up to the collapse of the Terrausd, especially if the American regulation remains light.
Hayes noted that future issuers would use and support the market momentum on traditional financial references to raise money, even without solid foundations.
According to him:
“A very bankable charismatic individual will come on stage and spit all kinds of nonsense, are (most likely a male) hands blowing and again blowing and you convince why the leverage he sells is about to combine the multi-trillion stabilecoin totally addressable market (tame).”
Hayes continued that this avalanche of copycats would eventually populate the bubble and collapse the market. He said:
“The bubble will pop up after the launch of a Stablecoin emittent on a public market, most likely in the US, which fools separates from dozens of billions of capital by using a combination of financial engineering, leverage and amazing showmanship.”