Ark Invest purchased $17.8 million worth of shares in Circle Internet Group on Wednesday, adding to positions across its ARKK, ARKW, and ARKF ETFs as the stock’s month-long decline reached 41%. The firm acquired 287,609 shares at an average price of $61.95.
Circle’s stock slipped another 1.1% on the day after plunging 18% on Tuesday, marking its steepest single-day drop in months.
New stablecoin raises competitive pressure
The selloff followed the launch of Open USD (OUSD), a new stablecoin backed by more than 140 companies including Visa, Stripe, Mastercard, BlackRock, and Coinbase. The initiative has raised concerns about direct competition with Circle’s USDC, particularly because of its different economic structure.
OUSD is designed to distribute reserve-generated yield to its partners, creating a challenge to Circle’s revenue model. Coinbase, which earns roughly half of USDC’s reserve income through its agreement with Circle, is also among the backers of the new stablecoin. That agreement is set for renewal in August 2026, adding another layer of uncertainty.
Analysts remain cautious but steady
Despite the sharp decline, analysts have largely maintained steady outlooks. Bernstein reiterated its Outperform rating with a $190 price target, while William Blair described the drop as likely an overreaction, pointing to Circle’s liquidity and infrastructure strength. Compass Point upgraded its view to Neutral from Sell but noted that OUSD could weigh on Circle’s long-term payments business.
Ark strategy focuses on downturn opportunities
The latest purchase reflects Ark Invest’s broader strategy of buying into weakness, a pattern it has followed with Circle since the company’s public listing in June 2025. The move suggests continued confidence in Circle’s underlying business despite the stock’s fall from a 52-week high above $260.
Ark also added 27,740 shares of Bullish, a digital asset exchange operator, valued at $699,880. Bullish shares rose 7.7% on Wednesday to close at $25.23.
Stablecoin market remains highly concentrated
USDC currently has a circulating supply of about $74.89 billion, giving it a 23.8% share of the stablecoin market. It remains second to Tether’s USDT, which dominates with $186.35 billion, or 59.22%. Combined, the two account for more than 83% of the total stablecoin market, which recently surpassed $314 billion.
In terms of activity, USDC processed roughly $21.5 trillion in on-chain transactions during the first quarter of 2026, highlighting its deep integration across crypto trading and decentralized finance despite its smaller circulating supply relative to USDT.
Adoption of OUSD becomes key watchpoint
Attention is now shifting to how OUSD gains traction once it launches later this year, particularly through the payment networks of its backers such as Visa and Mastercard. While this built-in distribution could accelerate adoption, the new stablecoin will still need to establish liquidity and trading pairs from scratch.
Circle CEO Jeremy Allaire defended the company’s position, pointing to USDC’s established network effects, liquidity, and long-standing integrations. He also noted that consortium-backed stablecoins have historically struggled to gain lasting traction.
Some analysts argue that USDC’s entrenched role in crypto trading and decentralized finance may limit OUSD’s immediate impact, even as competition intensifies across the sector.
Track stablecoin flows and Circle’s rivals using real-time data on our market opportunities dashboard.
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