The market plummets, reviewing the institutions quietly buying the dip
On March 11, 2025, global markets plummeted, but some investors and institutions chose to buy at the low point.Author: Mars Finance
In the turbulent waters of the financial markets, investors often face an eternal challenge: how to seize opportunities amid market turmoil. On March 11, 2025, global markets experienced a sudden crash, with both the U.S. stock market and the cryptocurrency market not spared. However, as the saying goes, "be greedy when others are fearful," some astute investors and institutions chose to "buy the dip" at this moment—buying at low prices in anticipation of future rebounds. This article will delve into which institutions and investors quietly bottomed out during yesterday's market crash and the investment logic behind them.
Ark Invest: A Firm Believer in Tech Stocks
As tech stocks suffered heavy losses, Ark Invest, led by Cathie Wood, once again demonstrated its unwavering confidence in innovative technology. According to The Block, as Coinbase's stock price fell 17.6% on Monday, Ark Invest decisively stepped in, purchasing 64,358 shares of Coinbase stock worth $11.5 million. Among them:
- Ark Innovation ETF (ARKK) bought 52,753 shares, valued at $9.4 million;
- Ark Fintech Innovation ETF (ARKF) bought 11,605 shares, valued at $2.1 million.
In addition, Ark invested $9.6 million to purchase Robinhood stock while selling $20.6 million worth of Block stock. On the day of the significant drop in the U.S. stock market, Ark Invest invested over $70 million in multiple stocks, including Tesla, Palantir, Coinbase, AMD, Tempus AI, and Robinhood.
This series of actions by Ark Invest is not coincidental. Since its inception, Ark has focused on investing in companies with disruptive innovation potential. Despite frequent market fluctuations, it has consistently maintained that these companies will lead the technological revolution in the future. The decision to increase positions during the drop in Coinbase's stock price reflects Ark's optimism about the long-term prospects of cryptocurrency and fintech. Currently:
- In the ARKK fund, Coinbase is the third-largest holding, with a weight of 7.1%, valued at approximately $375.1 million, second only to Tesla and Roku;
- In the ARKF fund, Coinbase is the second-largest holding, with a weight of 7.7%, valued at approximately $65.7 million, second only to Shopify.
This allocation shows Ark's high regard for Coinbase, believing that its leading position in the cryptocurrency trading space will continue to drive growth. At the same time, Cathie Wood has made a judgment about the current market: it is currently digesting the final stage of a rolling recession, which will give the Trump administration and the Powell Fed more policy adjustment space than investors expect, potentially pushing the U.S. economy into a "deflationary boom" in the second half of this year. Cathie Wood believes that the Fed's monetary policy will become more flexible, and the market may be underestimating this potential economic rebound force.
Ming Cheng Group: Strategic Investor in Bitcoin
Meanwhile, Hong Kong's Ming Cheng Group, through its wholly-owned subsidiary Lead Benefit, has once again demonstrated a strong interest in Bitcoin. According to Globenewire, Lead Benefit purchased 333 Bitcoins at an average price of $81,555 each, totaling approximately $27 million. Previously, the company had also purchased 500 Bitcoins at an average price of $94,375 each on January 9, 2025, with an investment of about $47 million.
This series of investment actions by Ming Cheng Group highlights its strategy of viewing Bitcoin as a short-term investment tool. The company stated that the purchase of Bitcoin is aimed at capturing its potential appreciation and increasing the diversity of its asset allocation. Additionally, the high liquidity of the Bitcoin market provides the company with the convenience of quickly liquidating assets when needed to support its main business—wet operations engineering.
This investment decision reflects Ming Cheng Group's optimistic attitude toward the cryptocurrency market. Despite the significant price volatility of Bitcoin, its status as a global digital asset is attracting more and more institutional investors. The continued accumulation by Ming Cheng Group may indicate its recognition of Bitcoin's long-term value.
Longling Capital: An Active Player in ETH
In the cryptocurrency market, Longling Capital's movements are also noteworthy. According to Lookonchain monitoring, Longling Capital withdrew 10,001 ETH from Binance on March 11, valued at approximately $19.16 million. Since December 19, 2024, this address has accumulated a total of 44,002 ETH at an average price of $2,563, with a total value of about $112 million.
It is worth mentioning that Longling Capital previously profited $33.67 million by "buying low and selling high" in ETH, but currently faces an unrealized loss of $28.78 million. Nevertheless, it chose to increase its position in ETH during the market crash, demonstrating confidence in ETH's long-term value. This action may be based on optimism about ETH's applications in decentralized finance (DeFi) and non-fungible tokens (NFTs).
However, risks cannot be ignored. Currently, Longling Capital's health ratio on Aave is 1.82, with a liquidation price of $1,048. If the price of ETH falls below this level, the collateralized ETH may face liquidation risk. But Longling Capital seems willing to take this risk and continue betting on ETH's future.
Bitcoin vs. U.S. Stocks: The Divergence in Rebound
In yesterday's market rebound, both the S&P 500 and the Nasdaq Composite Index closed with bearish candles, indicating a downward closing performance, while Bitcoin (BTC) achieved a 5.5% rebound. This divergence has sparked interest in the dynamics between cryptocurrencies and traditional stock markets. So why was Bitcoin able to rise against the trend in the same market environment while U.S. stocks performed poorly? BitMEX founder Arthur Hayes explained on social media:
- Bitcoin (BTC): A global 24/7 market, trading is unrestricted, cannot be inflated, and failure means bankruptcy or liquidation, with no national treasury relying on its rise;
- Stock Market: Trades only at specific times, with limited participants; although stocks cannot be inflated, if failure occurs with political backing, they may receive assistance. U.S. fiscal revenue is directly related to stock market performance, so the stock market often receives policy support during crises.
Hayes believes that Bitcoin represents a true free market, while the stock market is subject to policy intervention. Therefore, during a fiat liquidity crisis, Bitcoin prices often lead stock market declines and rebounds. This perspective provides a new lens for understanding the differences between cryptocurrencies and traditional financial markets.
Conclusion
Yesterday's market crash undoubtedly posed a significant challenge for investors. However, as demonstrated by Ark Invest, Ming Cheng Group, and Longling Capital, crises often harbor opportunities. These institutions chose to "buy the dip" during market downturns, reflecting their firm belief in the long-term value of tech stocks and cryptocurrencies.
Looking ahead, market trends remain full of uncertainty. Investors following in the footsteps of these institutions must carefully assess their risk tolerance and closely monitor market dynamics. In the turbulent waters of the financial markets, only those investors who can seize opportunities and time their moves will reap their rewards after the storm.
