Ark Invest Increases Its COIN Holdings, Dumps ARKB Spot Bitcoin ETF Shares

Ark Invest, the investment management firm led by Cathie Wood, recently purchased 53,708 Coinbase shares, valued at approximately $8.4 million.

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 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 with the U.S. Securities and Exchange Commission on September 12, 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). Ark also 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, preventing overexposure to specific assets. This also means Ark will adjust its investments if the value of COIN increases compared to the value of Ark’s other holdings in the fund.

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

Ark Sells Its Bitcoin ETF Shares From ARKW

Ark also 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, with a presence of 10.98% in the ETF. This places ARKB ahead of Tesla, Roku, and Coinbase, which are valued at 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. Meanwhile, the ARKW fund has gained 33% over the past year.

Ark Knocks Off Robinhood Shares

In addition to decreasing its holdings in Coinbase, Ark also offloaded 565,491 shares of Robinhood in February, amounting to about $8.2 million in sales. This move comes after the investor displayed confidence in the potential of Robinhood markets by acquiring its shares in December 2023.

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

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