MarketPR
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.
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%.
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