ARK Invest scoops $10M in Bullish as it hits record low amid crypto stock rout
News Summary
Cathie Wood’s ARK Invest increased its exposure to crypto exchange Bullish on Monday, buying $10.2 million worth of shares as the stock slid to a fresh record low during a brutal downturn for publicly traded crypto firms. The ARK Innovation ETF (ARKK) added 191,195 Bullish shares, with ARKW and ARKF funds also making purchases. This buying spree occurred as Bullish (BLSH) tumbled 4.5% to $36.75 on Monday, extending a months-long slide that has seen the stock drop nearly 46% over the past six months. The move also comes just ahead of Bullish’s third-quarter earnings report, which, despite a year-over-year decline in Q2 adjusted revenue, saw the company swing to a net income. Other crypto-linked equities, including Marathon Digital, Riot Platforms, CleanSpark, Michael Saylor's Strategy, Circle, and Coinbase, also experienced significant declines. Analysts Tom Lee of BitMine and Matt Hougan of Bitwise suggest Bitcoin (BTC) may be nearing a market bottom as early as this week. They attribute the market rout to lingering anxiety from the October 10 liquidation wave, uncertainty over whether the Federal Reserve will cut rates in December, ETF outflows, whale selling, geopolitical tension, nervousness around AI valuations, and President Trump’s tariff policies.
Background
ARK Invest, led by Cathie Wood, is known for its aggressive investment strategy in disruptive innovation and high-growth sectors, often engaging in contrarian buying during market downturns. Its flagship ARKK fund focuses on companies with disruptive potential, including those related to cryptocurrency and blockchain technology. The cryptocurrency market and related equities have faced significant volatility throughout 2025. Macroeconomic factors such as expectations around the Federal Reserve's monetary policy, geopolitical tensions, and concerns over high valuations in technology sectors (like AI) have impacted risk assets. President Trump's trade policies and tariff measures are also frequently cited by the market as potential sources of economic uncertainty, further influencing investor sentiment.
In-Depth AI Insights
What is the true strategy behind ARK Invest's decision to buy Bullish at a record low? ARK Invest's move reflects its typical long-term disruptive innovation investment thesis, rather than a reaction to short-term market volatility. The core strategy likely involves: - Belief in Long-Term Value: Despite Bullish's short-term stock plunge, ARK may see its underlying technology and market position as a crypto exchange as having long-term growth potential, viewing the current low price as an opportune entry point. - Contrarian Investing: Buying when the market is in widespread panic and the stock hits a record low aligns with Wood's