We write about Cathie Wood a lot, and for good reason.
She has been one of Wall Street’s earliest and most consistent believers in crypto. Long before Bitcoin and Ethereum became institutional assets, Wood was building exposure through companies like Coinbase, Tesla and a growing list of crypto-linked firms.
Every week, her ARK funds move in and out of names like Coinbase, Robinhood, Tesla, and more recently, stablecoin companies.
But this week, one move stood out.
Cathie Wood bought Circle on the day the stock tumbled 20%.
On March 24, ARK Invest bought 161,513 Circle (NYSE: CRCL) shares worth $16.34 million.
Circle had been one of the hottest crypto-linked stocks in the market, surging more than 100% in recent weeks as stablecoin optimism picked up.
Then came the drop.
Within days of that sale, Circle shares plunged 20% to close at $101.17 on March 24.
Notably, the investment firm sold roughly $5.9 million worth of Circle on March 20.
Across ARK’s combined ETFs, Circle is the fourth-largest holding, with a 4.20% portfolio weight, behind Tesla (Nasdaq: TSLA), CRISPR Therapeutics (Nasdaq: CRSP) and Advanced Micro Devices (Nasdaq: AMD), and ahead of Coinbase Global (Nasdaq: COIN) and Shopify (Nasdaq: SHOP).
The sell-off yesterday was triggered by policy.
A draft version of the proposed U.S. “Clarity Act” introduced new uncertainty around one of the most important features of stablecoins: yield.
Stablecoin yield — whether through platform rewards or indirect pass-through income — has been a key driver of adoption. It’s one of the reasons users hold assets like USDC beyond simple payments.
Take that away, and the value proposition changes.
Circle’s model is deeply tied to this structure. The company earns interest on reserves backing USDC and shares that income with partners like Coinbase, which then funds user rewards.
If that loop is broken, the impact could be meaningful.
Related: Coinbase, Circle stocks tumble as stablecoin rewards recieve no ‘clarity’
Wall Street still sees upside.
According to consensus estimates, Circle carries a “Moderate Buy” rating based on 18 analyst calls, with an average 12-month price target of $131, implying roughly 30% upside from current levels.
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Jeff Cantwell (Seaport Global) set one of the most bullish targets at $280, implying over 170% upside, maintaining a Buy rating.
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Peter Christiansen (Citi) also remains bullish with a $243 price target, suggesting 140% upside.
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Owen Lau (Clear Street) raised his target to $136, pointing to continued strength in stablecoin usage despite short-term volatility.
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David Koning (Baird) increased his target to $138, reinforcing confidence in Circle’s long-term growth.
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Dan Dolev (Mizuho) is more cautious, maintaining a Hold rating with a $120 target, citing regulatory risks around stablecoin yield.
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James Faucette (Morgan Stanley) set a $80 target, implying downside and reflecting a more conservative stance.
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James Yaro (Goldman Sachs) also remains cautious with a Hold rating and $98 target, slightly below current levels.
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Darrin Peller (Wolfe Research) is among the few bears, maintaining a Sell rating with a $65 target, citing downside risks.