Marshall Wace has recorded one of its most lucrative crypto trades to date, netting approximately $700m in profits from its early backing of stablecoin issuer Circle Internet Group following the firm’s red-hot initial public offering, according to a report by Bloomberg.

The report cites an unnamed sources familiar with the matter as revealing that the gain stems from the XO Digital Finance Fund, where Marshall Wace’s flagship Eureka hedge fund is the anchor LP. The strategy delivered an estimated 47% internal rate of return on its Circle stake, according to a Bloomberg's sources, having participated in Circle’s $400m Series E round in 2022.

Circle shares debuted at $31 on the firm's 5 June stock market debut before surging above $83 on day one, and traded as high as $151, valuing the company at >$33 billion. The uplift helped Eureka post a 2.05% YTD gain and a 2.9% return in June.

Marshall Wace reportedly retains a residual long position in Circle, positioning the fund to capture potential further upside.