Cathie Wood Bets $72M on Crypto Stocks as Bitcoin Tumbles

While Bitcoin crashed below $75,000 on Monday, Cathie Wood was shopping. ARK Invest scooped up approximately $72 million worth of crypto-related stocks across its funds, turning market panic into a buying opportunity.

The Dip-Buying Playbook

ARK's shopping list read like a crypto ecosystem directory: Robinhood, Circle Internet, Coinbase, Bullish, CoreWeave, Bitmine Immersion Technologies, and Block. The biggest individual bets were $32.7 million on Robinhood and $14.6 million on CoreWeave, an AI and crypto infrastructure play.

This wasn't impulsive buying. It's ARK's established playbook—lean into equity weakness when crypto volatility strikes. Just weeks earlier, when Bitcoin dipped below $90,000 in late January, the firm deployed $21.5 million across Coinbase, Circle, and Bullish.

The Diversification Paradox

Wood recently argued that Bitcoin offers "good diversification" benefits, citing ARK research showing weaker correlations between Bitcoin and traditional assets than those assets have with each other. But Monday's action revealed the flaw in this logic: when Bitcoin bleeds, crypto stocks hemorrhage.

Coinbase shares have maintained a correlation of over 0.8 with Bitcoin prices over the past year. Robinhood's crypto trading revenue directly depends on market volatility and volume. These aren't diversification plays—they're leveraged bets on crypto adoption.

Infrastructure vs. Speculation

ARK's picks reveal a strategic focus on infrastructure over pure-play speculation. CoreWeave provides GPU-powered cloud computing for both AI and crypto mining. Circle issues USDC, the world's second-largest stablecoin. Robinhood democratizes access to crypto trading for retail investors.

These companies benefit from crypto's growth without depending solely on price appreciation. They make money when people use crypto, not just when they hold it. That's a crucial distinction in a market where 90% of trading volume comes from speculation rather than actual utility.

The Timing Question

But why now? Bitcoin's recent slide came amid broader market uncertainty and regulatory concerns. Wood's timing suggests she sees current weakness as temporary noise rather than structural decline. Her bet is that crypto infrastructure companies will emerge stronger as the market matures and institutional adoption accelerates.

The risk? Crypto winter could last longer than expected. These companies' revenues remain deeply tied to market sentiment and trading volumes. If retail interest wanes or regulatory crackdowns intensify, even the best infrastructure plays could struggle.