Few investors command as much attention as Cathie Wood, the founder of Ark Invest. Known for her bold bets on disruptive innovation, Wood is once again making headlines—this time in the world of cryptocurrency exchanges. Her firm has steadily been building a sizeable stake in Bullish (BLSH), a newly public crypto exchange that has seen both dramatic highs and sharp pullbacks since its August 2025 IPO.
Despite the volatility, Ark’s increasing position signals strong confidence in Bullish’s long-term potential, particularly as the company expands its presence in digital asset trading and regulatory compliance.
Ark Invest’s Aggressive Accumulation
When Bullish went public on August 13, 2025, Ark wasted no time. The firm scooped up approximately 2.53 million shares, valued at about $172 million, spreading the investment across three of its funds:
- ARK Innovation ETF (ARKK)
- ARK Next Generation Internet ETF (ARKW)
- ARK Fintech Innovation ETF (ARKF)
Wood has since doubled down. Ahead of Bullish’s first earnings release as a public company, Ark purchased an additional 160,000+ shares, worth around $8.3 million, divided between ARKK and ARKW.
These fresh purchases bring Ark’s total Bullish stake to more than $129 million, cementing it as one of the firm’s more aggressive post-IPO plays.
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Who is Bullish?
Founded in 2020 and headquartered in George Town, Cayman Islands, Bullish operates as a regulated cryptocurrency exchange. It provides trading, custody, and liquidity services for digital assets.
But Bullish isn’t just another trading platform. The company is also the parent of CoinDesk, one of the most influential crypto media and data outlets. This dual positioning—operating a trading platform while owning a trusted crypto news brand—gives Bullish a unique footprint in the digital asset ecosystem.
As of September 2025, Bullish has a market capitalization of roughly $7.9 billion.
A Wild IPO Ride
Bullish’s IPO was anything but dull. Shares were initially priced at $37, but excitement quickly took over:
- Opening trade: ~$90
- Intraday peak: near $118
- First-day close: ~$68
The spectacular debut reflected strong enthusiasm for crypto-related stocks, but the weeks following the IPO brought a dose of reality. The stock dropped significantly from its highs, though it remained well above its IPO price.
This volatility created a classic “buy the dip” opportunity—one that Ark Invest has eagerly seized.
Q2 2025 Earnings: A Turning Point
On September 17, 2025, Bullish announced results for the quarter ended June 30, and the numbers were striking:
- Digital asset sales surged to $58.6 billion, up from $49.6 billion in Q2 2024.
- The company posted a net profit of $108.3 million ($0.93 per share), compared to a net loss of $116.4 million ($1.03 per share) in the same quarter last year.
This sharp turnaround from loss to profitability highlighted Bullish’s ability to capitalize on renewed trading activity in the crypto sector.
Adding fuel to investor optimism, Bullish also received a coveted New York “BitLicense”, granting it permission to offer spot-trading and custody services in one of the world’s most heavily regulated financial markets.
The market’s response was immediate:
- Shares jumped 5.8% the day after earnings.
- The following day, the rally intensified, with the stock surging another 20.7%.
Valuation Concerns
While the growth story is compelling, Bullish is not cheap. As of its latest rally, the company trades at a forward price-to-earnings ratio of 317.7x—a lofty valuation even in the high-risk world of crypto equities.
For comparison, most established financial exchanges (such as Nasdaq or CME Group) trade at forward multiples below 30x. This discrepancy underscores that investors are pricing Bullish more like a high-growth tech company than a traditional exchange.
Supporters argue that Bullish’s exposure to crypto markets justifies the premium. Critics counter that such a valuation leaves little margin for error if trading volumes decline or regulatory headwinds intensify.
Cathie Wood’s Conviction Play
Why does Ark remain so bullish on Bullish? The reasoning is consistent with Wood’s broader investment philosophy:
- Disruptive Innovation – Crypto exchanges represent a fundamental shift in how value is transferred globally. Bullish’s blend of exchange operations and media ownership gives it multiple growth levers.
- Volatility as Opportunity – Ark often buys into high-volatility assets, betting on long-term growth despite short-term swings. Bullish’s post-IPO dip fit this pattern perfectly.
- Strategic Fit in ARK ETFs – Bullish aligns with the themes of ARKK, ARKW, and ARKF, which focus on next-gen internet, fintech, and innovation.
Wood has repeatedly demonstrated a willingness to hold through turbulence. By continuing to accumulate shares, Ark signals that it views Bullish not as a speculative trade, but as a long-term conviction bet.
Risks That Investors Should Watch
While the story is exciting, investors should weigh the risks before following Ark’s lead:
- Regulatory uncertainty – Crypto remains under scrutiny worldwide. Future regulations could impact trading activity or profitability.
- Valuation risk – At over 300x forward earnings, any slowdown in growth could trigger steep declines.
- Market dependency – Bullish’s revenues depend heavily on digital asset trading volumes, which are notoriously cyclical.
- Competition – Rivals like Coinbase, Binance, and Kraken continue to dominate global crypto trading.
Outlook for 2025 and Beyond
Bullish’s near-term performance will likely depend on two factors:
- Crypto market sentiment – If digital assets rally, trading volumes will rise, boosting Bullish’s revenues and justifying its premium valuation.
- Regulatory expansion – Securing licenses in key markets like New York strengthens Bullish’s credibility and opens the door to broader adoption.
If the company can sustain profitability while scaling operations, it could evolve into one of the most important players in the digital finance landscape.
For now, though, the stock will likely remain volatile—attractive to risk-tolerant investors, but daunting for those seeking stability.
Final Thoughts
Cathie Wood’s Ark Invest has a history of making bold, sometimes controversial, bets on the future. With Bullish, she is doubling down on the idea that crypto exchanges and digital asset ecosystems will become core pillars of global finance.
Bullish’s IPO, though turbulent, has provided Ark with opportunities to buy into the company at discounted levels. Strong Q2 earnings and a new regulatory license add fuel to the thesis.
Yet with a sky-high valuation and ongoing risks, Bullish remains a stock for investors who share Ark’s willingness to embrace volatility in pursuit of long-term growth.