Ark Invest Adds $33.6 Million to Circle, Coinbase, and Robinhood
Cathie Wood’s fund increased positions in three major crypto-linked stocks, citing stablecoin yields and blockchain expansion.
Ark Invest added $33.6 million to Circle, Coinbase, and Robinhood positions between March and September. These three holdings now represent 14.9% of the $6.5 billion ARK Innovation ETF. The fund manager continued buying during periods of price weakness.
Circle Internet Group holds the largest stake at 6% of the fund. Coinbase accounts for 4.6%, and Robinhood Markets makes up 4.3%. This concentration reflects a strategic bet on the infrastructure of the digital asset economy rather than speculative tokens.
Circle earns from stablecoin reserves
Circle issues USDC, the second-largest stablecoin with $74 billion in circulation. The company generates revenue from interest earned on reserve assets. In the second quarter, this reserve income totaled $668 million. The average reserve return stood at 3.5%.
Federal Reserve policy directly impacts this yield. Rate cuts reduce the interest Circle earns on its holdings. Wood purchased $16.3 million in Circle stock on March 24. She added $13.9 million in mid-July and $3.4 million on August 31. These buys occurred while the stock price declined.
Coinbase diversifies beyond spot trading
Coinbase reported $555 million in subscription and services revenue in Q2. 88% of its net revenue now comes from sources other than Bitcoin spot trading. Interest on user-held USDC constitutes a significant portion of this income. The company also operates a derivatives trading platform.
Ark Invest bought approximately $8 million of Coinbase shares on August 2. This purchase followed a quarterly report that caused the stock price to drop. Additional buys occurred on August 6. The company maintains a large user base and regulatory standing in the U.S.
Robinhood chain fees rise in August
Robinhood reported record revenue of $1.3 billion in Q2, up 32% year-over-year. Crypto revenue fell 38% to $100 million during the same period. The company launched its own blockchain in July. Transaction fees on this network reached $6.6 million in August.
This fee volume is up from $3.6 million in the prior month. Robinhood is currently subsidizing transaction costs in its native wallet. This 90-day subsidy expires on September 29. Wood reduced the fund’s stake in July but bought more on September 3. GN markets/crypto (en-US) notes this activity signals continued confidence in the platform.
