ARK Invest Dumps Coinbase (COIN) and Circle Shares as Crypto Bill Vote Looms

Key Highlights

• Senate prepares for critical Tuesday afternoon vote on the Clarity Act, a landmark cryptocurrency regulation proposal
• Bitcoin (BTC) declined 1.6% to reach $76,890 in the 24 hours preceding the legislative vote
• Polymarket data shows Clarity Act passage probability plummeted from 31% Monday to just 19% Tuesday
• ARK Invest executed sales of Coinbase (COIN), Circle Internet Group, and additional crypto-linked securities Monday
• Cathie Wood’s investment firm simultaneously divested Alphabet holdings while acquiring Meta Platforms shares

Tuesday afternoon marks a critical moment for cryptocurrency regulation as the Senate prepares to cast votes on the Clarity Act. This legislation represents one of the most significant regulatory developments for digital assets in recent history, and financial markets are responding with heightened volatility.

In the 24-hour period leading up to the vote, Bitcoin experienced a 1.6% decline, settling at $76,890. Despite this recent pullback, the premier digital currency has posted impressive gains of 31% since early July, though it continues to trade 12% below its 2026 opening levels.

Bitcoin (BTC) Price

Other major cryptocurrencies followed Bitcoin’s downward trajectory, with Ethereum declining 1.9% to $2,475 and XRP experiencing a modest 0.2% decrease to $1.40. Publicly traded companies with cryptocurrency exposure similarly retreated during premarket sessions.

Prediction market platform Polymarket reveals diminishing confidence in the bill’s prospects, with passage probability sliding to 19% Tuesday from 31% the previous day. Despite eleventh-hour efforts by Republican senators to secure Democratic backing, the legislation’s fate hangs in the balance.

Cathie Wood’s Firm Liquidates Digital Asset Holdings

Cathie Wood’s ARK Invest strategically reduced its cryptocurrency sector exposure Monday, divesting positions in multiple digital asset companies. The fund family sold stakes in Coinbase, stablecoin provider Circle Internet Group, Bullish (CoinDesk’s parent company), and Bitmine Immersion Technologies, an Ethereum treasury firm.

Coinbase shares retreated 3.9% in premarket activity Tuesday, following a robust 9% rally during the prior session. Strategy, which maintains the largest corporate Bitcoin treasury, dropped 3.8% premarket after Monday’s 4.6% advance.

ARK’s most substantial individual transaction Monday involved liquidating more than 322,000 shares of 10X Genomics, representing approximately $22 million in value. Additionally, the investment firm disposed of nearly 38,300 Alphabet shares worth roughly $12.8 million.

Investment Firm Adds Social Media and Healthcare Positions

Balancing its sales activity, ARK acquired approximately 11,000 shares of Meta Platforms via its ARKW fund, representing about $7.1 million in capital deployment. The firm simultaneously increased positions in Ionis Pharmaceuticals and Guardant Health, reinforcing its commitment to biotechnology and medical sectors.

ARK expanded its defense technology holdings by purchasing AeroVironment shares, a drone manufacturer, while simultaneously reducing exposure to Advanced Micro Devices and Amazon.

The investment manager liquidated approximately 20,500 AMD shares valued at roughly $10.6 million and 20,000 Amazon shares worth about $5.1 million.

These transactions signal a strategic portfolio recalibration at ARK, reducing concentration in certain established technology giants while increasing allocation to social networking platforms and life sciences companies.

The impending Senate decision on the Clarity Act represents the most significant near-term catalyst for cryptocurrency markets. Market observers anticipate additional downward pressure on Bitcoin and associated equities should the legislation fail to advance.

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