Cathie Wood's ARK Invest has made another significant investment in cryptocurrency exchange Bullish, purchasing $8.21 million worth of shares on September 16. This acquisition adds 161,183 shares to ARK's portfolio, distributed between its ARK Innovation ETF (ARKK) with 120,609 shares and ARK Next Generation Internet ETF (ARKW) with 40,574 shares.
This latest move brings ARK's total holdings across three ETFs (ARKK, ARKW, and ARK Fintech Innovation ETF) to approximately $130 million. The investment represents a strategic rebuilding of ARK's position in Bullish, which the firm first supported during the company's New York Stock Exchange debut last month with a $172 million purchase at the IPO launch.
Bullish shares have experienced significant volatility since going public. The stock peaked at $118 on its first trading day - a 218% gain from its $37 starting price - but subsequently fell to $51.36 by the close, representing a 57% decline from its intraday high. The stock remains down 24.47% from its debut levels.
The exchange has faced operational challenges, reporting a 0.2% year-over-year revenue decline and a concerning 270% drop in operating profitability for the quarter ending March. Analysts remain divided on Bullish's prospects, with firms like Jefferies, JP Morgan, and Bernstein maintaining "hold" or "neutral" ratings, while Cantor Fitzgerald has given the stock an "overweight" rating with a $60 price target.
Bernstein analysts project that Bullish could become the second-largest institutional crypto exchange if it successfully launches U.S. operations in 2026, potentially challenging Coinbase's market leadership.