ARK Invest didn’t wait around to add eToro (ETOR) to its portfolio.

Cathie Wood’s St Petersburg, California-based investment management company bought 140,000 shares in eToro on the stock-and-crypto trading platform’s Nasdaq debut on Wednesday.

ARK’s ETOR allocation is worth just under $9.4 million, based on the closing price of $67. The shares rose 29% on the first day of trading after opening at $52, which itself was significantly higher than the marketed range as eToro received much higher demand than anticipated.

ARK added the eToro shares to its Fintech Innovation ETF (ARKF), one of three funds the firm uses for a significant portion of exposure to crypto and crypto-adjacent companies, such as Coinbase (COIN) and Robinhood (HOOD).

The other two ETFs are Next Generation Internet (ARKW) and Innovation (ARKK).

Read more: EToro Stock Surges 29% on First Day of Trading

Jim Chanos, the veteran investor who made his name shorting Enron, is betting on bitcoin (BTC) trade while shorting Strategy (MSTR), the largest corporate holder of the biggest cryptocurrency.

In an interview at the Sohn Investment Conference in New York with CNBC, Chanos detailed the bet. “We’re selling MicroStrategy stock and buying bitcoin,” Chanos said, calling it an arbitrage move: “Basically buying something for $1, selling it for $2.50.”

Strategy started acquiring bitcoin in 2020 and has since morphed into a bitcoin proxy for investors. The firm has issued debt and equity to accumulate the cryptocurrency, and now has a 568,840 BTC hoard bought at an average cost of $69,287 per coin.

The aggressive bitcoin accumulation, backed by Wall Street analysts, has made its stock sensitive not just to bitcoin’s price, but also to investor appetite for risk. Strategy’s shares are up 3,500% in the last five years to now trade at $416 a piece, giving it a $115 billion market capitalization.

To Chanos, Strategy’s valuation doesn’t make sense as MSTR shares have surged more than the price of bitcoin.

The fund manager argues that this rise reflects retail speculation more than fundamentals, a theme he believes is echoed by other firms now trying to replicate Strategy’s bitcoin accumulation strategy.

Major tokens such as dogecoin (DOGE), cardano (ADA), and solana (SOL) slipped more than 5% in the past 24 hours as traders moved to lock in some profits after a strong week-long rally.

The broader crypto market surged alongside risk assets last week, fueled by macroeconomic tailwinds and renewed investor optimism, but signs are emerging that some overheated segments may be due for a pause.

“Bitcoin has been hovering around the $104,000 level for the sixth day, experiencing increased rotation,” FxPro’s Alex Kuptsikevich told CoinDesk in an email. “This is quite expected behaviour as we approach the all-time highs of December and January, which served as turning points.”

“Ether is trading around $2615, having failed to consolidate above the $2700 mark, around which the 200-day moving average also passes. It is likely that after rallying 55% over the past seven days, the second-largest capitalised cryptocurrency will probably pause or start a correction with a potential target at $2400,” Kuptsikevich warned.

Sentiment indicators also reflect growing exuberance, with the Crypto Fear & Greed Index touching 73, approaching levels typically associated with overheated conditions, as noted Tuesday.

Earlier in the week, risk appetite surged after a combination of positive U.S. inflation data, strong earnings from China’s tech sector, and a breakthrough U.S.–China trade agreement boosted global equity markets. Crypto followed, with bitcoin briefly topping $104,000 and ether climbing to $2,700 — before both ran into resistance.

“China’s tech sector earnings surged in the wake of the US-China trade deal announcement, leading investors to hope for increased investments and innovations like AI last year,” Haiyang Ru, Co-CEO of the HashKey Exchange Business Group, said in a Telegram message.

“Additionally, a monthly report revealed that US inflation was lower than expected, adding more fuel for a continued bull run in the markets,” Ru said.

Still, institutional activity remains robust. Santiment data from earlier this week showed mid-sized bitcoin holders, or wallets with 10 to 10,000 BTC, had accumulated over 83,000 BTC in the past month.

Meanwhile, Coinbase’s upcoming inclusion in the S&P 500 on May 19 is viewed as a short-term catalyst for the sector, with some analysts estimating passive fund demand for the stock could top $9 billion.

“We believe there is further room for digital assets to rally, especially as Coinbase’s inclusion into the S&P 500 on 19 May draws closer,’ Singapore-based QCP Capital said in a Telegram broadcast late Wednesday.

“History tells us that index inclusion tends to act as a short-term catalyst, as passive managers adjust their allocations to track the benchmark more closely,” the fund noted.