ARK Invest, the investment firm renowned for its focus on innovation led by Cathie Wood, has significantly changed its portfolio by selling shares of major cryptocurrency-related companies. On February 14, the firm sold 214,068 shares of Coinbase (COIN) and 119,394 shares of Robinhood (HOOD) from its Exchange-Traded Funds (ETFs), marking its first major cryptocurrency-related stock divestment this year.
Sales from ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW)
The sales from its ARK Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW) amounted to a total of approximately $34 million for Coinbase shares, based on the closing price of $160.4 on the same day. After hours, the stock price skyrocketed by 4.09% to $166.94, coinciding with Bitcoin crossing the $52K threshold.
The move coincides with Coinbase’s stock reaching new highs for 2024, surpassing $160 for the first time since early January, before a proposed spot Bitcoin ETF. Meanwhile, ARK’s decision to offload Robinhood shares, previously accumulated actively by its ARKW fund, was attributed to compliance with Rule 12d3-1, aiming to maintain diversified investment portfolios.
ARK Invest’s strategic portfolio management
The divestment from Coinbase and Robinhood reflects ARK Invest’s dynamic approach to portfolio management, particularly in the volatile cryptocurrency sector. The sale of Coinbase shares follows a significant price surge, with the stock nearing its previous high of $173 set in November 2023. This strategic adjustment allows ARK to capitalize on the gains and reallocate resources within its funds. ARK’s continued investment in its spot Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB), which increased its Bitcoin holdings to 24,925 BTC valued at $1.3 billion, illustrates the firm’s ongoing commitment to cryptocurrency as a key component of its investment strategy.
Cathie Wood’s ARK Invest has been known for its bullish stance on digital assets and innovative technologies, making its portfolio adjustments a closely watched indicator of sentiment toward the cryptocurrency market.
It is important to know that the firm recently acquired Tesla and Meta shares. On Wednesday, Cathie Wood increased her holdings in digital assets-related firms by purchasing 145,455 Tesla shares valued at $27.45 million and 7,796 META shares. In addition, she sold 10,601 shares of NVIDIA Corp for 32,629 Qualcomm shares.
ARK Invest’s portfolio adjustments come at a pivotal moment for the cryptocurrency market, which has seen increased volatility and regulatory scrutiny. The firm’s decision to sell shares of Coinbase and Robinhood, alongside significant purchases in other areas of technology and innovation, highlights a nuanced approach to navigating the current financial industry.
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