Ark Invest recently sold off 74,291 shares of Coinbase, totaling $20.8 million, across three of its exchange-traded funds. The firm, led by Cathie Wood, made these sales in its Innovation ETF (ARKK), Next Generation Internet ETF (ARKW), and Fintech Innovation ETF (ARKF). This strategic offloading comes after Ark Invest sold over $100 million worth of Coinbase shares last week as the price of COIN reached fresh yearly highs.
Ark Investโs Diversification Strategy
- Ark Invest aims to avoid any individual holding taking up more than 10% of an ETFโs portfolio to maintain diversification.
- If Coinbaseโs stock price continues to surge, the firm is likely to continue rebalancing its fund weightings.
Current Coinbase Holdings
- At present, Coinbase remains the largest holding within ARKK, ARKW, and ARKF ETFs.
- The current weightings for Coinbase are at 10.6%, 10.9%, and 12.7% in ARKK, ARKW, and ARKF, respectively.
Market Value and Performance
- ARKKโs Coinbase holdings are valued at $826.6 million, while ARKW and ARKF stand at $188.9 million and $147.9 million, respectively.
- Over the past year, ARKK is up by 29.5%, ARKW by 58.2%, and ARKF by 59.5%.
Coinbase Surges as Bitcoin Price Rebounds
Despite a slight decline in U.S. stocks, Coinbase shares exhibited a rally as bitcoin surpassed the $70,000 mark. The cryptocurrency exchangeโs fortunes have aligned with the broader crypto market, with its recent upswing coinciding with bitcoinโs resurgence above $70,000.
Coinbase Stock Movement
- At the market close on Monday, Coinbase stock was trading at $279.71.
- COIN gained nearly 10% for the day, marking over 25% growth in the past week and 61% year-to-date.
- The current trading level is just 18% below the all-time high of $342.98 reached in November 2021.
Bitcoinโs Price Trend
Bitcoin is currently trading at $71,139, showing a 6% increase in the last 24 hours and a 10% surge over the past week. This positive movement aligns with The Blockโs price page data.
Overall Crypto Market Performance
The overall crypto market has also seen an uptick, with the GMCI 30 index, representing the top 30 cryptocurrencies by market cap, gaining 5% in the last 24 hours to reach 158.16.
Hot Take: Ark Investโs Strategic Moves and Coinbaseโs Streak
Ark Investโs decision to offload Coinbase shares strategically highlights the firmโs commitment to maintaining a diversified portfolio. As Coinbaseโs stock price continues to soar, it remains a significant holding in Ark Investโs ETFs. Moreover, with bitcoin bouncing back above $70,000 and the broader crypto market showing positive momentum, Coinbaseโs recent surge is indicative of the crypto sectorโs resilience and growth potential.
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