Is the Crypto Stocks Rally Over?

Ark Invest, the prominent fund led by Cathie Wood, is once again making headlines, this time for cashing out on crypto stocks like Coinbase and Circle.

After a strong first half of 2025 for crypto equities, Ark’s latest sell-offs suggest it may be locking in profits as the rally cools. With Coinbase and Circle both posting massive gains in recent months, the timing of these moves also raises an important question: Is the crypto stock boom running out of steam?

Ark Invest Cashes Out of Crypto Stocks

Amid ongoing volatility in the crypto market, on June 30, 2025, Ark Invest sold approximately $43.8 million worth of Coinbase stock, following a $12.5 million transaction on June 27.

In addition to Coinbase, since June 24, the fund has sold over 410,000 Circle shares, generating more than $110 million, following divestitures of $44.76 million (June 18) and $51.7 million (June 17) over two consecutive days.

These moves come as Coinbase stock surged 43% in June, leading the S&P 500, driven by the stablecoin growth narrative. Meanwhile, Circle’s stock has soared nearly 490% since its IPO.

It appears Ark Invest is capitalizing on this strong price rally to lock in profits, particularly as JPMorgan Chase downgraded Circle to “underweight,” predicting its stock price could fall to $80 by the end of 2026.

In its latest analysis, 10x Research highlights that 2025 marks “the first year of crypto stocks.” The market has recorded a 119% surge in crypto stock performance in 2025.

However, Ark Invest’s sell-off may serve as a warning signal. Combined with Ark’s continued investment in technology stocks like AMD, TSMC, and Shopify, while selling Circle and Coinbase, reflects a strategic shift toward more sustainable growth sectors.