Ark Invest Holds Major Stakes in Circle, Coinbase, and Robinhood

Cathie Wood's Ark Invest is increasing its exposure to crypto-linked equities, with Circle Internet Group (NYSE: CRCL), Coinbase Global (NASDAQ: COIN), and Robinhood Markets (NASDAQ: HOOD) collectively representing a large share of the $6.5 billion ARK Innovation ETF (NYSEMKT: ARKK) as of Sept. 8. The three companies were weighted at 6%, 4.6%, and 4.3% of the fund, respectively.

Circle issues USDC, the second-largest stablecoin by market cap, with $74 billion in circulation. The asset is backed by short-term Treasury bills and other interest-bearing cash equivalents, allowing Circle to capture the resulting interest payments. In the second quarter, reserve income reached $668 million with an average reserve return of 3.5%. This yield fluctuates with Federal Reserve benchmark rate decisions; cuts reduce Circle's income, while hikes increase it. Ark invested $16.3 million in Circle on March 24, added $13.9 million in mid-July, and purchased another $3.4 million on Aug. 31.

Coinbase operates the largest U.S. crypto exchange and has diversified its revenue streams beyond spot trading. In the second quarter, subscription and services revenue hit $555 million, with 88% of net revenue coming from sources other than Bitcoin spot trading. Interest payments on USDC held by users at Coinbase now constitute a significant portion of this top line, alongside a new platform for trading financial derivatives such as perpetual futures contracts. Ark bought approximately $8 million of Coinbase shares on Aug. 2 following a price drop after a disappointing quarter, and made additional purchases on Aug. 6.

Robinhood launched a new blockchain in July, though crypto remains a tertiary business line for the online brokerage. The platform reported record second-quarter revenue of $1.3 billion, up 32% from the prior year, but crypto revenue fell 38% to $100 million. Users paid $6.6 million in chain fees in August, up from $3.6 million the previous month. Robinhood has covered transaction costs for its own wallet since launch, but this 90-day subsidy expires Sept. 29. Activity and fee revenue could moderate once the subsidy ends. Ark reduced its stake in Robinhood in July 2026 before buying more on Sept. 3.