Cathie Wood‘s Ark Invest said to have paid $70.6 million for 6.93 million shares of the special purchase acquisition company, or SPAC, that is merging with Circle through the business’s ARK Fintech Innovation exchange-traded fund (ETF). According to MarketWatch, this purchase would be the ETF’s first new position.
Ark Invest’s ETFs have a history of making daring digital investments, as evidenced by their acquisition of $80 million in Robinhood shares when the stock’s price dropped in October 2021. Despite passing on the first Bitcoin futures ETF in the same month, Wood is bullish on cryptocurrency.
USD Coin (USDC), which is presently the second-largest stablecoin in terms of market value, operated by Circle. Circle revealed its plans to go public in July 2021 through a SPAC with Concord Acquisition Corp. Which would value the company at $4.5 billion.
The merger supposed to complete by the end of the fourth quarter of 2021. With the business listed on the New York Stock Exchange under the symbol “CRCL”.
The decision to go public motivated by regulators’ growing concern about stablecoins. In any case, the crypto sector praised the move. “[USDC] has been around since 2014, and is another example of a well-established participant being rewarded for their contribution to the ecosystem,” said Vladimir Vishnevskiy, co-founder of Swiss investment management firm St. Gotthard Fund Management AG.
In the United States, lawmakers are still scrutinising stablecoins, questioning the market’s transparency and reserve backing. Legislators in the United States are planning to submit new crypto legislation in the coming weeks.