9 months ago
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ARK Invest, a key player in the issuance of a spot Bitcoin exchange-traded fund (ETF) in the United States, has executed its first major sale of cryptocurrency-related stocks this year.
On Feb. 14, the firm divested itself of 214,068 shares in Coinbase (COIN) and 119,394 shares in Robinhood (HOOD) across its ETF portfolios. This move marked a significant shift in ARK’s investment strategy, given its previous accumulations of these assets.
The sale was concentrated within the ARK Innovation ETF (ARKK), which alone offloaded 152,600 Coinbase shares. The ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) also participated, selling 31,459 and 30,009 Coinbase shares, respectively.
The combined sales generated approximately $34 million, calculated from Coinbase’s closing price of $160.4 on Feb. 14. This sale occurred as Coinbase’s stock price surged, approaching its previous high of $173 set in November 2023, indicating a significant market movement.
ARKW’s divestiture of Robinhood shares, totaling about $1.5 million from its closing price on Feb. 14, was stated to align with Rule 12d3-1, which is aimed at limiting ETF investments in certain securities. This sale contrasts with ARK’s recent acquisition of Robinhood shares, highlighting a strategic adjustment in its portfolio management. The move echoes the firm’s previous sales in a bid to rebalance its portfolio.
As of Feb. 15, ARKW’s portfolio prominently features Coinbase, Roku, ARK Bitcoin ETF, Block, Tesla, and Robinhood, with substantial allocations to these entities. Notably, Coinbase and Roku represent 9.5% and 7.7% of ARKW’s total allocations, respectively.
Furthermore, the ARK 21Shares Bitcoin ETF (ARKB) has increased its Bitcoin holdings, purchasing an additional 1,960 BTC on Feb. 15. This acquisition raised ARKB’s total Bitcoin allocation to 24,925 BTC, valued at approximately $1.3 billion, cementing ARK’s ongoing commitment to cryptocurrency investments and its faith in Bitcoin.
ARK Invest’s decision to sell shares in Coinbase and Robinhood comes despite the positive performance of both stocks. Coinbase, in particular, has seen a 19% increase in value leading up to its fourth-quarter earnings report, with expectations for stronger earnings and revenue fueled by a surge in trading volume. Similarly, Robinhood, a platform that extends into crypto trading, has reported a 10% growth in its crypto revenue for the quarter.
