Author: Mars Finance

In the turbulent financial markets, investors often face an eternal challenge: how to capture opportunities in the midst of market volatility. On March 11, 2025, the global market experienced an unexpected plunge, with the US stock market and the cryptocurrency market not spared. However, as the saying goes, "be greedy when others are fearful," some savvy investors and institutions chose to "buy the dips" at this moment - that is, to buy at the low price points, expecting future rebounds. This article will delve into which institutions and investors have been quietly buying the dips in yesterday's market crash, and the investment logic behind their moves.

Ark Invest: A Steadfast Believer in Tech Stocks

Amidst the battering of tech stocks, Ark Invest led by Cathie Wood once again demonstrated its unwavering confidence in innovative technologies. 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, worth $115 million. Specifically:

• Ark Innovation ETF (ARKK) purchased 52,753 shares, worth $94 million;
• Ark Fintech Innovation ETF (ARKF) purchased 11,605 shares, worth $21 million.

In addition, Ark also invested $96 million to purchase Robinhood stocks, while selling $206 million worth of Block stocks. On the day of the US stock market plunge, Ark Invest invested over $70 million in total, buying into multiple stocks including Tesla, Palantir, Coinbase, AMD, Tempus AI, and Robinhood.

Ark Invest's series of operations is not a coincidence. Since its inception, Ark has focused on investing in companies with disruptive innovation potential. Despite frequent market fluctuations, it has steadfastly believed that these companies will lead the technological revolution in the future. Its increased position in Coinbase during the stock price decline reflects Ark's optimism about the long-term prospects of cryptocurrencies and financial technology. Currently:

• In the ARKK fund, Coinbase is the third-largest holding, with a weight of 7.1%, valued at about $375 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 about $65.7 million, second only to Shopify.

This configuration demonstrates Ark's high regard for Coinbase, believing that its leading position in the cryptocurrency trading field will continue to drive growth. Meanwhile, Cathie Wood has also made a judgment on the current market: the market is currently digesting the final stage of a rolling recession, which will give the Trump administration and the Federal Reserve (Powell Fed) more policy adjustment room than investors expect, potentially leading the US economy into a "deflationary boom" in the second half of this year. Cathie Wood believes that the Federal Reserve's monetary policy will be more flexible, and the market may have underestimated the potential for this economic rebound.

Mingcheng Group: A Strategic Investor in Bitcoin

Meanwhile, Hong Kong's Mingcheng Group, through its wholly-owned subsidiary Lead Benefit, has once again demonstrated its strong interest in Bitcoin. According to Globenewswire, Lead Benefit purchased 333 Bitcoins at an average price of $81,555 per Bitcoin, for a total investment of approximately $27 million. Previously, the company had purchased 500 Bitcoins at an average price of $94,375 per Bitcoin on January 9, 2025, with an investment of about $47 million.

Mingcheng Group's series of investment behaviors highlights its strategy of viewing Bitcoin as a short-term investment tool. The company stated that the purchase of Bitcoin is to capture its potential appreciation and increase the diversity of its asset allocation. Furthermore, the high liquidity of the Bitcoin market also provides convenience for the company to quickly realize its assets and support its core business - wet work engineering.

This investment decision reflects Mingcheng Group's optimistic attitude towards the prospects of the cryptocurrency market. Although Bitcoin prices fluctuate significantly, as a global digital asset, it is attracting more and more institutional investors. Mingcheng Group's continuous increase in its position may indicate its recognition of Bitcoin's long-term value.

Longling Capital: An Active Participant in ETH

In the cryptocurrency market, Longling Capital's moves have also attracted attention. According to Lookonchain monitoring, Longling Capital withdrew 10,001 ETH, worth about $19.16 million, from Binance on March 11. Since December 19, 2024, this address has cumulatively built a position 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 had previously profited $33.67 million by "buying low and selling high" ETH, but is currently facing an unrealized loss of $28.78 million. Nevertheless, it chose to increase its ETH position during the market crash, demonstrating its confidence in the long-term value of ETH. This behavior may be based on the optimistic outlook for ETH's application prospects in decentralized finance (DeFi) and non-fungible tokens (NFTs).

However, the risks should not be ignored. Currently, Longling Capital's health rate on Aave is 1.82, with a liquidation price of $1,048. If the ETH price falls below this level, its pledged ETH may face liquidation risk. But Longling Capital seems willing to take on this risk and continue to bet on ETH's future.

Bitcoin vs. US Stocks: Differences in Rebounds

In yesterday's market rebound, the S&P 500 and Nasdaq Composite Index both closed with bearish candles, showing a downward closing performance, while Bitcoin (BTC) achieved a 5.5% rebound. This difference has sparked people's attention to the dynamics between cryptocurrencies and traditional stock markets. So, why in the same market environment, can Bitcoin rise against the trend, while US stocks perform weakly? BitMEX founder Arthur Hayes explained on social media:

• Bitcoin (BTC): A 24/7 global market, unrestricted trading, cannot be issued, failure means bankruptcy or liquidation, no reliance on government fiscal support for its rise;
• Stock market: Trading only at specific times, limited participants, although stocks cannot be issued, if they fail and have political backgrounds, they may receive bailouts. The US fiscal revenue is directly related to the stock market performance, so the stock market is often supported by policies during crises.

Hayes believes that Bitcoin is a true free market, while the stock market is subject to policy intervention. Therefore, during fiat currency liquidity crises, Bitcoin prices tend to lead the stock market in both declines and rebounds. This perspective provides a new angle for understanding the differences between the cryptocurrency and traditional financial markets.

Conclusion

Yesterday's market crash undoubtedly posed a huge challenge for investors. However, as demonstrated by Ark Invest, Mingcheng Group, and Longling Capital, opportunities often lie within crises. These institutions chose to "buy the dips" during the market downturn, reflecting their steadfast belief in the long-term value of tech stocks and cryptocurrencies.

Going forward, the market outlook remains uncertain. Investors following in the footsteps of these institutions need to carefully assess their own risk tolerance and closely monitor market dynamics. In the turbulent financial markets, only those investors who can seize the opportunities and time the market can reap the rewards after the storm.