Ark Invest Buys $37M Bullish, Robinhood Shares Amid Crypto Slump

Cathie Wood's Ark Invest has significantly increased its holdings in crypto-related stocks, notably purchasing over $21 million in Bullish shares and $16 million in Robinhood shares recently, with the latter becoming a major component of its ARK Innovation ETF at 4.09% weighting. Despite the recent declines in share prices for Bullish, Robinhood, and other crypto-related stocks, Ark continues to show confidence in Robinhood's long-term growth prospects, driven by its expanding customer base of 26.5 million and strong financial performance, including a 98% jump in crypto revenue to $160 million in Q2. Robinhood's growth is further supported by strategic moves such as acquiring Bitstamp, launching a regulated stablecoin USDG, and expanding AI-powered tools and services that enhance user experience and asset management. Ark's investment strategy focuses on companies involved in disruptive innovation, aligning with Robinhood's expansion beyond zero-commission trading into AI-driven and crypto staking products. Meanwhile, Robinhood faces regulatory scrutiny in the U.S., with investigations into its crypto division's marketing practices. Overall, Ark Invest demonstrates a bullish stance on the crypto market’s potential, especially through its targeted investments in platforms like Bullish and Robinhood amid broader market volatility.