Cathie Wood’s ARK Invest bought 109,129 Circle shares after the stablecoin issuer secured a limited-purpose trust charter in New York.
Summary
- ARK acquired about $6.83 million in Circle shares across three exchange-traded funds.
- Circle received a limited-purpose trust charter from the New York Department of Financial Services.
- CRCL closed 2.54% lower at $62.61 on July 31 despite the regulatory approval.
- Circle plans to gradually transfer USDC issuance to its New York trust entity.
ARK Invest adds 109,129 Circle shares
ARK purchased 77,103 Circle shares through its flagship ARK Innovation ETF, according to the firm’s daily trade disclosures. The ARK Next Generation Internet ETF added 22,238 shares, while the ARK Fintech Innovation ETF acquired another 9,788.
Together, the purchases totaled 109,129 shares. They were worth approximately $6.83 million based on Circle’s July 31 closing price of $62.61.
The investment extended ARK’s exposure to Circle as the company expands its regulated stablecoin infrastructure in the United States. It also followed ARK’s roughly $40.2 million purchase of Tesla, SpaceX and Nvidia shares on July 28 during a broader technology-sector sell-off.
ARK made several other purchases on July 31, including 298,243 CoreWeave shares, 12,512 shares of the 3iQ Solana Staking ETF, 7,500 Pony AI shares and 2,700 Kodiak AI shares.
The firm reduced its positions in Shopify, Cloudflare, CrowdStrike, Snowflake, 10x Genomics, Komatsu, Brera Holdings, Iridium Communications and Figma.
Circle secures New York trust charter
ARK’s purchase followed Circle’s receipt of a limited-purpose trust charter from the New York Department of Financial Services. The approval covers Circle Internet Trust Company LLC, which will operate as Circle New York Trust.
A New York limited-purpose trust company can conduct approved virtual currency activities and exercise fiduciary powers. Unlike a BitLicense holder, it can also provide money transmission services in the state without obtaining a separate money transmitter license.
Circle said it plans to gradually move USDC issuance to the New York entity. Circle New York Trust will operate alongside Circle National Trust, the federally chartered national trust bank authorized to provide custody and collateral trustee services.
Circle CEO Jeremy Allaire described the New York approval as a long-term objective for the company.
“Earning a New York trust charter has been a longstanding objective for Circle given the regulatory clarity that comes with it.”
He added that the charter places USDC within a strong regulatory framework as digital dollars become more widely used in the global financial system.
Circle builds state and federal oversight
Circle’s New York authorization follows the Office of the Comptroller of the Currency’s final approval on July 10 for the company to establish Circle National Trust.
The federal trust bank will initially provide fiduciary digital asset custody services to Circle and its affiliates. Circle has also identified management of USDC reserves as a possible future capability, subject to its approved business plan and regulatory requirements.
The two charters give Circle separate state and federal regulatory structures. NYDFS will supervise the New York entity’s approved virtual currency and fiduciary activities, while the OCC will oversee the national trust bank.
For U.S. investors, the approvals strengthen Circle’s position within the regulated stablecoin market. However, the charters do not remove risks tied to USDC growth, interest-rate changes, competition or Circle’s share valuation.
Circle stock falls despite regulatory progress
Circle stock ended July 31 at $62.61, falling $1.63, or 2.54%, during the session. The decline suggests investors did not immediately treat the New York charter as a reason to reverse the stock’s recent weakness.
CRCL had gained about 10% on July 10 after Circle announced final OCC approval for its national trust bank. The shares subsequently surrendered those gains as the broader technology and digital-asset sectors came under pressure.
ARK’s latest purchase comes as the investment firm expects consolidation across crypto businesses. ARK digital assets research director Lorenzo Valente said on July 28 that revenue and investment were becoming concentrated among fewer companies.
Valente predicted more acquisitions, bankruptcies, shutdowns and talent-focused deals. However, his post did not identify the dataset, category definitions or measurement period supporting its revenue concentration figures.
Circle is scheduled to report its second-quarter 2026 financial results on Aug. 5, giving investors another measure of whether regulatory progress is translating into stronger USDC activity and company revenue.
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