Ark Invest has recently made headlines with the sale of 74,291 Coinbase shares, amounting to a total value of $20.8 million. This decision marks a significant shift in the firm’s investment strategy, following a previous sale of over $100 million worth of Coinbase shares just the week before.
Rebalancing Across ETFs
The sale of Coinbase shares was spread across three of Ark Invest’s exchange-traded funds. Specifically, 57,652 shares were sold from the Innovation ETF (ARKK), valued at $16.1 million, 12,544 shares were sold from the Next Generation Internet ETF (ARKW), valued at $3.5 million, and 4,095 shares were sold from the Fintech Innovation ETF (ARKF), valued at $1.2 million. This move by Ark Invest was aimed at keeping any single holding below 10% of an ETF’s portfolio to maintain diversification.
Coinbase currently holds the title as the largest holding in ARKK, ARKW, and ARKF ETFs, making up 10.6%, 10.9%, and 12.7% of their respective portfolios. The market value of ARKK’s Coinbase holdings stands at $826.6 million, with ARKW and ARKF’s Coinbase investments valued at $188.9 million and $147.9 million, respectively. Despite these sales, ARKK, ARKW, and ARKF have seen gains of 29.5%, 58.2%, and 59.5% over the past year, showcasing the overall success of Ark Invest’s investment strategies.
In addition to the sale of Coinbase shares, Ark Invest also divested $7.9 million of Jack Dorsey’s Block shares and $31.5 million of Robinhood (HOOD) stock on the same day. This decision to sell off holdings in these companies reflects a broader shift in Ark Invest’s investment focus and a move away from crypto stocks in the short term.
Despite the recent sell-off, Coinbase’s stock closed at $279.71 on the day of the sale, marking a 10% increase from the previous day and a 25% rise over the past week. Year-to-date, Coinbase has surged by 62%, with shares trading just 18% below their all-time high. The recent rally in Coinbase’s stock price has coincided with a broader uptick in the cryptocurrency market, with Bitcoin reaching $70,500 reflecting a 5% increase over the last 24 hours and a 12% rise in the past week.
Ark Invest’s Future Investment Plans
Despite the sell-off of Coinbase and Robinhood shares, Ark Invest is reportedly considering an investment in the upcoming Reddit IPO. This potential move hints at Ark Invest’s continuous pursuit of new and promising investment opportunities, showcasing their ability to adapt to changing market conditions and trends.