Woofun AI reports that Cathie Wood’s ARK Invest executed a contrarian accumulation of Circle Internet Group (CRCL) shares, reinforcing its position in the USDC issuer despite severe market headwinds.

The transaction involved 220,000 shares purchased on Tuesday across three actively managed exchange-traded funds, according to the company’s daily trade disclosure. Valued at approximately $13.9 million based on the New York Stock Exchange closing price of $63.22, this acquisition occurred while Circle’s stock languished 22% year-to-date and roughly 76% below its post-initial public offering (IPO) peak.

Woofun AI data shows that cumulative July acquisitions reached 725,517 shares, building upon earlier purchases of 287,609 shares on July 1 and 217,896 shares on July 9. By Wednesday, Circle constituted 4.37% of the ARK Fintech Innovation ETF (ARKF), ranking as the seventh-largest holding with a value of $33 million. Simultaneously, the asset represented 3.35% of the ARK Innovation ETF (ARKK), standing as the ninth-largest holding worth $218 million.

Structurally, analyst sentiment has shifted sharply; 10x Research revoked its buy rating after the stock fell below $80 on Tuesday. The firm stated that Circle’s fundamentals have "meaningfully deteriorated," citing slowing USDC activity and declining active addresses. USDC’s market capitalization has declined roughly 3% year-to-date to $73 billion at the time of publication, according to CoinGecko. Despite the recent decline, the stablecoin’s market capitalization remains about 17% higher than a year ago.

Despite the negative reassessment, 10x Research acknowledged that a bullish case persists, suggesting the current price action could either signal a long-term buying opportunity or indicate the onset of a prolonged downturn.