This Hot IPO Stock Keeps Falling. Cathie Wood’s ARK Invest Keeps Buying the Dip.

ARK Invest, the investment management firm founded by Cathie Wood, bought 105,013 shares of cryptocurrency exchange Bullish across three exchange-traded funds on Frid (Joe Raedle/Getty Images)

Key Points

• ARK Invest funds purchased 105,013 shares of Bullish, valued at over $5.3 million, on Friday.
• Bullish comprises approximately 1% of the total holdings for each of ARK’s three actively managed funds.
• Bullish stock is still trading above its $37 offer price, closing at $50.26 on Monday.

Bullish stock soared in its red-hot trading debut earlier this year. While shares of the cryptocurrency exchange have fallen from their highs, Cathie Wood’s ARK Invest has been a staunch supporter.

Trade disclosures on Friday show three of ARK’s actively managed funds bought Bullish stock. ARK Innovation exchange-traded fund (ticker: ARKK) snapped up 72,537 shares of the crypto exchange, while ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) bought 21,354 shares and 11,122 shares, respectively.

The total 105,013 shares were valued at more than $5.3 million based on Friday’s closing price of $50.57.

ARK Invest didn’t respond to a request for comment on the transactions.

As of Monday, ARKK owned 1,603,762 shares of Bullish, ARKW owned 486,954 shares, and ARKF owned 299,265 shares, according to a form on the firm’s website. Bullish comprises roughly 1% of each fund’s total holdings.

ARK has been steadily increasing its stake in the crypto exchange since it made its trading debut on Aug. 13. At the time, ARK purchased around $2.5 million worth of shares across the three exchange-traded funds, valued at roughly $172 million.

Shares of the crypto exchange surged more than 80% from its offer price of $37 during the first day of trading on the New York Stock Exchange. The stock rose for two straight sessions, closing up 9.8% at $74.63 the following day. It has since given back some of those gains, ending the session at $50.26 on Monday.

Bullish announced in October that it would be adding crypto options trading to its platform, saying the company was “investing significantly in its institutional offering” following the launch of spot crypto trading in select U.S. states earlier that month. The company also owns and operates CoinDesk, a crypto news and data website.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com