Ark Invest buys the dip on Block, Circle and other crypto stocks

Cathie Wood's Ark Invest continued to increase its exposure to crypto-related stocks on Tuesday, amid falling prices and a broader crypto market downturn.

According to its trade filing, Ark Invest purchased $13.5 million worth of Block. Inc shares, $7.6 million worth of Circle Internet Group and $3.86 million worth of Coinbase shares across several of its exchange-traded funds on Tuesday.

Ark bought the three companies' shares mostly through the Ark Innovation ETF (ARKK). As of Tuesday, Coinbase represents the fund's fourth-largest holding worth $391 million, accounting for roughly 5.22% of its portfolio. ARKK also holds $179 million worth of Circle, representing 2.39% of the fund. ARKK has $85.2 million worth of Block.

On Tuesday, Ark Invest also added $1.52 million worth of Bullish stock, $878,794 in Robinhood Markets and $2.8 million worth of its own Ark-21Shares spot bitcoin ETF.

The company has steadily added more crypto-related stocks to its ETFs in recent weeks, taking advantage of their recent market underperformance.

Block, the crypto-focused financial services and tech company co-founded by Jack Dorsey, closed up 2.96% on Tuesday at $63.69, but remains down 20.54% in the past month. USDC issuer Circle fell 3.62% yesterday to $70.11, which is 51% lower than its price a month ago. Coinbase also dipped 0.72% on Tuesday and 30% in the past month.

The drop in crypto-related stocks coincides with an ongoing crypto market depreciation primarily due to thin liquidity and uncertainty over the macroeconomic environment. Bitcoin is currently trading at $87,948, down from its $126,000 all-time high recorded just six weeks ago.