Ark Invest ignores the sharp decline of encryption stocks and boldly invests $37.2 million to increase the position in Bullish and Robinhood.

Against the backdrop of a widespread fall in crypto assets-related stocks, Ark Invest, led by Cathie Wood, once again showcased its counter-cyclical investment style. According to the latest trading documents, the company significantly purchased $21.2 million worth of bullish stocks and $16.2 million worth of Robinhood Markets Inc. stocks through its ETF on Tuesday, despite both of these assets closing lower on the day.

Ark Invest Counter-Cyclical Accumulation Details

The trading records show that the ARK Innovation ETF (ARKK) bought 356,346 shares of Bullish and 150,908 shares of Robinhood on Tuesday.

This is Ark's third consecutive trading day increasing its holdings in Robinhood stocks, adding approximately $14 million and $9 million on Monday and last Friday, respectively.

Prior to this, Ark had purchased a total of $172 million in Bullish stocks through three ETFs after Bullish was listed on the New York Stock Exchange, indicating a long-term optimism towards the exchange.

Stock Prices Under Pressure: Bullish and Robinhood Drop on the Same Day

Despite Ark's continued buying, Bullish and Robinhood's stock prices remained under pressure on Tuesday.

Bullish fell by 6.09%, closing at 59.51 USD, and dropped another 3.24% in after-hours trading.

Robinhood fell 6.54%, reporting 107.50 dollars, with an after-hours continued fall of 1.23%.

Market analysis suggests that short-term selling pressure and the overall weak performance of the Crypto Assets sector are the main reasons leading to the stock price pressure.

Crypto Assets related stocks all fell

On August 19, stocks related to Crypto Assets generally fell. On the same day, the Nasdaq index closed down 1.46%, reflecting the vulnerability of technology and growth assets under macro pressure.

Wood's Contrarian Logic

Wood has always been known for her "buying on dips" strategy, especially in the innovative and technology sectors she favors. Market observers point out that Ark's recent bullish position on Robinhood may be based on the following judgments:

Long-term value: Bullish as a newly launched crypto exchange with growth potential; Robinhood continues to expand in retail trading and crypto business.

Sector pullback opportunity: Crypto Assets stocks have recently experienced a significant fall, and valuation pressure has eased.

Capital allocation strategy: When volatility in the technology and encryption markets intensifies, positioning in advance is expected to yield profits during the rebound.

Conclusion

Despite the recent significant pullback of stocks related to Crypto Assets, Ark Invest still chooses to go against the trend by increasing their positions in Bullish and Robinhood, accumulating over 37 million USD. This move may not immediately reverse the downward trend of stock prices, but from a long-term investment perspective, Cathie Wood's strategic bets are worth the market's continued attention. If the sentiment in the Crypto market improves in the future, these positions may become highlights in Ark's portfolio.