Cathie Wood Scoops Up 2.5M Bullish Shares Amid Blockbuster Debut — Does Retail Think It Is Overvalued?

Cathie Wood’s Ark Investment Management bought 2.53 million shares of Bullish (BLSH) on Wednesday as the cryptocurrency exchange soared nearly 90% compared to its initial public offering price.

The holdings were distributed among ARKK, ARKW, and ARKF ETFs. Wood usually invests in tech companies with potential for future growth, even if they trade at substantially higher prices, relative to the broader markets.

Woods’s funds had also acquired thousands of shares of stablecoin issuer Circle Internet (CRCL) when the cryptocurrency firm made a strong debut at the New York Stock Exchange in June.

Bullish stock began trading shortly after noon on Wednesday at $90 per share, more than double its IPO price of $37. Then it soared as high as $118 before scaling back the gains. The stock was halted twice, just minutes after its debut, due to high volatility.

However, a poll with over 9,000 respondents on Stocktwits showed that 44% of traders are avoiding the stock entirely, while 19% were looking for a short-term trade. It also showed that 28% were in it for the long haul, while 9% were looking to trade around the volatility.

“The successful IPO and the current ‘crypto summer’ provide a strong initial tailwind. However, the long-term viability hinges on its ability to navigate the inherent volatility of the crypto market and establish a sustainable competitive advantage,” one user wrote.

“I just don't see how another crypto exchange is worth a crazy premium,” another user wrote before attributing the rise to billionaire Peter Thiel’s endorsement.

The strong debut of Bullish came ahead of Bitcoin surging past $124,000 for the first time amid increased bets of rate cuts by the Federal Reserve.

With strong investor enthusiasm, Bullish sold 30 million shares in the IPO, raising $1.1 billion for the company. Wednesday’s closing price gave the company a market value of more than $10 billion.

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