Ark Invest carried out a broad trim of its crypto-linked holdings on Monday as the digital-asset equity complex rallied into a pivotal US Senate vote. The firm's trade disclosure showed it sold 36,628 Coinbase shares worth about $7 million, 142,350 Circle Internet Group shares across two funds worth roughly $13.8 million, 153,881 Bitmine Immersion Technologies shares valued near $3.96 million, and 18,280 Bullish shares worth about $687,693. The largest crypto-related disposal was 1,528,953 shares of the ARK 21Shares Bitcoin ETF, worth approximately $40 million. The bitcoin fund closed up 2.22% at $26.19. Ark routinely adjusts positions to keep any single holding from exceeding 10% of a fund's portfolio for diversification.
The move coincided with a crypto-stock rally after the return of the US Congress from recess and renewed attention on the Digital Asset Market Structure Clarity Act. Senate Republicans released a final draft reflecting changes sought by Democrats on ethics and other topics, and President Donald Trump had earlier agreed to a bipartisan ethics package covering roughly 80% of contested items. Polymarket odds for the bill being signed into law in 2026 briefly climbed near 30% to 35%, but later faded to about 18% to 19% amid opposition from 18 state attorneys general and unresolved disputes over DeFi developer liability and stablecoin yield. A procedural cloture vote is set for Tuesday at 2:15 p.m. ET and requires 60 votes; Republicans hold 53 seats and need at least seven Democrats.
Separately, Compass Point analyst Ed Engel upgraded Coinbase from Sell to Neutral and lifted his price target to $177 from $130. TradingView data showed COIN closed at $186.19, up 6.23%, already above the new target. Compass Point's target remains below Morgan Stanley's $250, Goldman Sachs' $219, and Cantor Fitzgerald's $212. Engel's thesis is built on bitcoin's four-year cycle rather than the legislation: he noted bitcoin rebounded from a cyclical low after a record $3 billion short liquidation on August 19 and moved above the roughly $67,000 cost basis for short-term holders, putting about 65% of them in profit. Coinbase CEO Brian Armstrong has also said bitcoin has bottomed for this cycle and should trend higher into the next halving.
The equity market split along balance-sheet lines. Strategy gained about 3% while MARA Holdings fell, and the iShares Bitcoin Trust rose about 1% against a 0.8% drop in the S&P 500 ETF. Bitcoin itself traded near $77,100 and Ethereum near $2,480, both slightly lower, underscoring that the crypto-equity move was driven by the vote and the upgrade rather than spot prices. For Coinbase, the stablecoin-yield language in the CLARITY Act is a direct revenue issue: it threatens roughly $1.35 billion in annual USDC rewards revenue. Coinbase has backed the bill while expanding stablecoin rails into more than 1,000 US banks, and its tokenized-equities business is expected to launch in 2027 regardless of the legislative outcome.
