As of Wednesday, Circle accounted for 4.37% of the ARK Fintech Innovation ETF (ARKF), making it the fund’s seventh-largest holding.
ARKF’s Circle position was valued at about $33 million, according to its latest holdings data
Related: USDC issuer Circle wins final approval for US national trust bank charter Circle also represented 3.35% of the flagship ARK Innovation ETF (ARKK), where it ranked as the fund’s ninth-largest holding, worth about $218 million. ARK’s latest purchase came as analysts reassessed Circle’s outlook following a sharp decline in the company’s stock price. Digital asset research platform 10x Research said it no longer considers Circle a buy after the stock fell back below $80.
In a report published Tuesday, the company said it previously viewed CRCL as attractive below that level but now believes Circle’s fundamentals have “meaningfully deteriorated.” The research report also pointed to slower USDC activity, including a decline in active addresses, as a concern for Circle. Related: USDT wins payments, USDC wins DeFi as stablecoins diverge: Dune USDC’s market capitalization has declined roughly 3% year-to-date to $73 billion at the time of publication, according to CoinGecko. Despite the recent decline, the stablecoin’s market capitalization remains about 17% higher than a year ago.