The ARK Innovation ETF (ARKK) is surging 5.00% in pre-market trading on Friday, following news of a significant investment by Cathie Wood's ARK Invest in newly listed stablecoin issuer Circle (CRCL). This move highlights ARK's continued focus on innovative technologies and cryptocurrencies.

ARK Invest purchased approximately 4.5 million shares of Circle on its first day of trading, with an estimated value of $373 million. The investment was spread across three of ARK's actively managed ETFs: ARKK, ARKW, and ARKF. This substantial allocation to Circle comes as part of a broader portfolio reshuffle, which saw ARK trim positions in other crypto-related stocks such as Coinbase (COIN) and Robinhood (HOOD).

The enthusiastic market response to ARK's investment strategy is evident in ARKK's pre-market rally. Investors appear to be optimistic about the potential of Circle and the broader cryptocurrency market, despite recent volatility in the sector. This move also reinforces Cathie Wood's reputation for identifying and investing in disruptive technologies, which has been a key driver of ARKK's performance in the past.