Star stock-picker Cathie Wood of Ark Invest made a decisive portfolio shift, capitalizing on the AI trade’s peak while doubling down on the crypto sector. Wood sold a portion of Ark’s position in artificial intelligence leader Palantir Technologies Inc. (PLTR) on the day of its earnings report and directed approximately $12 million into Bullish (NYSE: BLSH), a cryptocurrency exchange backed by prominent tech investor Peter Thiel.
The contrasting moves signal a potential rotation by the famed growth investor, often called “the queen of innovation,” from a high-flying AI name that has faced valuation concerns toward an expanding player in the digital asset space.
Ark Invest sold 38,338 shares of Palantir on Nov. 3, coinciding with the company’s third-quarter earnings release. The trade appeared prescient as Palantir’s stock dipped in subsequent sessions, despite the company reporting better-than-expected results and raising its full-year forecast. The decline reflects growing market apprehension that AI stocks may be overvalued.
Simultaneously, Ark aggressively added to its position in Bullish across three of its flagship ETFs:
These purchases, valued at roughly $12 million, elevate Ark’s total stake in the crypto exchange. While Palantir remains a significant holding, the trade underscores Ark’s increasing conviction in the crypto market’s growth trajectory.
Bullish has recently demonstrated strong operational momentum. Its newly launched crypto options platform recorded an impressive $82 million in trading volume within its first five days of operation. The platform allows clients to use their entire portfolio as collateral across spot, futures, and options markets—a feature designed to boost capital efficiency and attract professional traders. Institutional partners like FalconX Global, Wintermute, and BlockTech participated in the launch.
On the regulatory front, Bullish has made significant strides in expanding its U.S. presence. After securing a BitLicense from the New York State Department of Financial Services, the exchange officially launched in 20 states last month. A recently announced corporate banking partnership with Deutsche Bank, facilitating fiat deposits and withdrawals for clients in Hong Kong and Germany, further solidifies its position as a global, institution-focused digital asset platform.
Financially, Bullish’s Subscription, Services, and Other (SSO) segment showed robust growth, with Q2 sales jumping 27.4% year-over-year to $32.9 million. Although overall adjusted revenue saw a slight decline of approximately 6% to $57 million, the company’s Q3 guidance for SSO revenue between $43.5 million and $48 million suggests its core growth engine is re-accelerating.
Wall Street maintains a cautiously optimistic outlook. Based on ratings from 13 analysts over the past three months, Bullish holds a “Moderate Buy” consensus rating. The average 12-month price target of $60.67 implies a potential upside of nearly 20% from current levels.
Investors are keenly awaiting Bullish’s third-quarter earnings report, scheduled for release before market open on November 19, for a clearer picture of its financial health. As the market watches closely, Cathie Wood’s substantial bet on Bullish highlights her continued faith in the convergence of institutional finance and cryptocurrency.
