Ark Invest Stacks Coinbase Shares Amid Crypto Market Dip

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Ark Invest, the investment management firm led by Cathie Wood, recently purchased 53,708 Coinbase shares, valued at approximately $8.4 million. According to the announcement, this move is part of the firm’s ongoing strategy to rebalance its fund weightings. It is in response to a price drop following the past U.S. presidential debate that affected the broader cryptocurrency market.

Ark Invest Continues to Strengthen Its Portfolio

Notably, the acquisition marks Ark Invest’s first transaction involving Coinbase shares since the lows seen in early August. As per the latest filing, Ark Invest purchased 38,475 shares (worth $6 million) for its Innovation ETF (ARKK) and 9,349 shares (about $1.5 million) for its Next Generation Internet ETF (ARKW). Likewise, the investment firm acquired 5,884 shares ($925,000) for its Fintech Innovation ETF (ARKF).

The decision to increase its position comes amid Ark’s strategy of guaranteeing no individual holdings occupy more than 10% of an ETF’s portfolio. This prevents overexposure to specific assets. This also means Ark Invest is likely to adjust its investments if the value of COIN increases compared to the value of Ark’s other holdings in the fund.

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According to the latest disclosure, COIN is the fourth-largest holding in the ARKK ETF, making up 6.5% of the latest disclosure. Meanwhile, ARKW’s and ARKF’s holdings in Coinbase are valued at $67 million (5.1%) and $60 million (7.3%), respectively. Coinbase shares closed at $157.15 on September 11, according to TradingView.

Ark Invest Sells its Bitcoin ETF Shares

Ark Invest recently sold 118,209 shares of its ARKB Spot Bitcoin (BTC) Exchange-Traded Fund (ETF), valued at $7.76 million, from its ARKW. As of July 24, ARKB was the largest holding in the ARKW ETF, making up 10.98% of the portfolio. This puts ARKB ahead of Tesla, Roku, and Coinbase, with 9.5%, 8.48%, and 8.23% of the ETF, respectively.

However, ARKW’s holdings in ARKB are valued at $162.5 million, and the spot Bitcoin ETF has seen a 31% increase since its inception. Likewise, the ARKW fund has gained 33% over the past year.

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Ark Invest Knocks off Robinhood Shares

In addition to reducing its holdings in Coinbase, Ark also offloaded 565,491 shares of Robinhood in February, amounting to about $8.2 million in sales. This contrasts with the investor’s move in December 2023 when it displayed confidence in the potential of Robinhood markets by acquiring its shares.

Recall that, Cathie Wood shared her intention to reinvest profits in their promising stocks, particularly the life science sector. She emphasized the use of a dynamic investment approach to maximize returns.