Everyone (including us) keeps screaming and shouting about how successful Circle’s IPO was.
Well, it’s hard not to talk about it – CRCL jumped about 170% on Day 1, and people took it as a sign that Wall Street’s getting more open to crypto-related companies.
Then, kachow – this headline drops:
Cathie Wood’s ARK Invest sold nearly $100M worth of Circle shares.
Wait… is this the end? Is Circle cooked? Did ARK just call the top??
*Starts running around in panic*
Hold up. Take a breath. This looks scary, but it’s not necessarily a red flag.
Here’s what’s actually happening:
Circle’s stock absolutely ripped after going public – again, +170% on the first day, and +543% as of now.
ARK probably just wanted to lock in some short-term gains while it’s still hot. Completely normal.
Also, context: they bought over 4M CRCL shares. What they sold is just 14% of that. So, they aren’t bailing – it’s a trim.
ARK does this kind of thing all the time. Get in early, take partial profits, stay flexible.
Now, if more big investors started selling – or if retail investors got scared – then, yes, we would have a problem. But so far, no other major Circle backers have reported selling.
Plus, Circle’s business fundamentals haven’t changed, so the company is definitely not falling apart:
USDC is still on top with $61B in circulation, and Circle earns interest on those reserves;
The GENIUS Act is moving forward, and if it passes, it would legitimize US-issued stablecoins.
If you’re looking for real red flags, keep an eye on these:
👉 Big volume + multiple institutions selling. One big seller could be noise. A crowd rushing for the exit? That’s a sign.
👉 How CRCL behaves as we get closer to July 19, aka options expiration day, when investor contracts on the stock will expire. That can cause extra price swings, so if CRCL holds around $150 – $160, we’re good.
👉 Insider sales after December. That’s when the post-IPO lock-up period ends, and company execs are finally allowed to sell their shares. If a lot of them start selling – you’ll see that in SEC Form 4 filings – they’re probably not confident in the company’s future, and you should start paying attention.
Until then, let’s not lose our minds.
Now you’re in the know. But think about your friends – they probably have no idea. I wonder who could fix that… 😃🫵
Spread the word and be the hero you know you are!
