Cathie Wood's ARK Is Buying CRCL Stock's Slump While Selling HOOD's Gains

• HOOD stock has gained more than 21% in the past year, far outperforming rival CRCL’s 68% decline. 
• Wood keeps buying the dip in CRCL while appearing to cash in on gains from HOOD’s climb. 
• Wood's continued interest in crypto-related stocks aligns with her support for the CLARITY Act.

Cathie Wood appears to be reshuffling her digital-related bets, increasing exposure to Circle Internet Group (CRCL) while scaling back her position in Robinhood Markets Inc. (HOOD) in the latest set of trades.

ARK Investment Management bought about 217,896 CRCL shares across multiple exchange-traded funds while dumping 85,319 HOOD shares on Thursday, according to the firm’s latest trade notification.

Wood’s Digital Rotation

Wood’s decision to sell HOOD stock comes even as the brokerage firm has gained more than 21% in the past year, far outperforming rival CRCL’s 68% decline.

Robinhood is on track for a fourth consecutive year of gains, even as stablecoin firm Circle ended last year in the red and appears set to do the same this year. Yet, Wood keeps buying the dip in CRCL while appearing to cash in on gains from HOOD’s climb.

Wood has backed the stablecoin issuer since its debut, purchasing shares on its launch day. “On the day of the amazing debut of $CRCL, @LorenzoARK ’s stablecoin blog is timely. USDC and Tether are creating demand for dollars, helping to offset the declining demand for dollars from China and other countries,” she had said at the time in a post on X.

Meanwhile, Circle’s company executives have been offloading shares even as Wood bulks up her position in the company. HOOD insiders have also been offloading in recent months.

The CLARITY Act

Wood's continued interest in crypto-related stocks aligns with her support for the CLARITY Act, a proposed U.S. crypto market-structure bill that would provide regulatory clarity by distinguishing when digital assets are commodities rather than securities and expanding the Commodity Futures Trading Commission's oversight role.

Wood has previously described the legislation as a key step toward fostering innovation and keeping crypto development in the U.S., and has backed the bill's developer-protection provisions.

However, the legislation now faces an uncertain path in the Senate after Congress missed its July 4 target for passage.

HOOD Vs CRCL: Wall Street Stance

Meanwhile, Wall Street seems to be in line with Wood’s approach, with analysts increasingly bullish on CRCL while relatively more bearish on HOOD.

According to data from Koyfin, of the 25 analysts covering CRCL, 13 have a ‘Buy’ or higher rating on the stock. The average 12-month price target of $131.76 implies more than 109% upside.

Meanwhile, 28 analysts covering HOOD stock have an average 12-month price target of $112.32, implying a downside of about 2.4% and suggesting the stock may have already peaked.

HOOD Vs CRCL: What Does Retail Think?

On Stocktwits, retail sentiment for HOOD is ‘neutral’ at the time of writing, while it is ‘bearish’ for CRCL.

One user said Circle “Needs the Clarity Act.”

Meanwhile, a user on HOOD said, “coil before earnings and this is going to spring!!!” Robinhood is expected to report its second-quarter results on July 29.

Both HOOD stock and CRCL shares were gaining in the overnight session at the time of writing.

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