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Solana Latest Updates: ARK Makes Major Investment in Crypto Infrastructure Amid ETF Outflows

Solana Latest Updates: ARK Makes Major Investment in Crypto Infrastructure Amid ETF Outflows

Bitget-RWA2025/11/03 00:16
By:Bitget-RWA

- ARK Invest's ETFs (ARKK, ARKW, ARKF) now hold $2.15B in crypto assets, reallocating from traditional tech stocks. - The firm increased crypto exposure to 29% in ARKF, investing in Coinbase, Robinhood, and Bullish (CoinDesk's parent). - Despite mixed reactions to Solana ETFs and outflows in Bitcoin/Ethereum ETFs, ARK emphasizes long-term crypto infrastructure bets.

ARK Invest's

ETFs have notably boosted their investments in assets tied to cryptocurrencies, with the total value across its three main actively managed funds—ARKK, , and ARKF—now surpassing $2.15 billion. The company has shifted funds away from conventional technology stocks, redirecting them toward crypto infrastructure and trading platforms. This move marks a deliberate shift in strategy toward digital assets in response to changing market conditions, as reported by .

This transition is especially evident in ARKF, where 29% of its holdings are now in crypto-related assets. ARKW follows with 25.7%, and

has 17.7%. Key investments include (holding over $675 million), , stablecoin provider Circle, and ETFs focused on staking such as ETHQ/U and SOLQ/U, according to the Coindesk report. To make room for these additions, ARK has reduced its stakes in established tech companies like Palantir and Shopify, selling more than $8 million in Palantir shares and $3.7 million in Kratos Defense shares in recent transactions, based on .

Solana Latest Updates: ARK Makes Major Investment in Crypto Infrastructure Amid ETF Outflows image 0

The company has also made a substantial investment in Bullish, CoinDesk's parent firm, purchasing $5.3 million in shares this week and raising its total holding to 2.27 million shares worth $114 million. This aligns with ARK's ongoing focus on digital asset infrastructure, a sector it has targeted since Bullish's $1.1 billion IPO earlier this year, as noted in the Coindesk report.

At the same time, the debut of

(SOL)-centric ETFs has received a mixed response. Grayscale and Bitwise have both launched Solana ETFs with staking features, managing $222 million and $72 million in assets, respectively, as highlighted in . Despite these launches, SOL's price remains under $200, falling short of earlier expectations. Experts believe this lackluster performance is similar to Ethereum's price behavior after its ETF launch, where prices initially stagnated before eventually rising due to increased inflows, according to .

However, the overall crypto ETF market is encountering challenges.

and spot ETFs saw considerable outflows at the end of October, with $471 million and $81.44 million withdrawn, respectively, according to . This reversal highlights shaky investor sentiment and underscores the sector's sensitivity to broader economic trends and regulatory uncertainties.

In contrast to the market's turbulence, ARK is focusing on long-term investments in crypto infrastructure as a safeguard against stagnation in traditional asset classes. While some remain skeptical about the durability of this approach, ARK's increasing allocations suggest a growing acceptance of digital assets as a fundamental part of institutional portfolios.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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