ARK Invest Sells Cryptocurrency-Related Stocks
ARK Invest, a prominent player in the US Bitcoin exchange-traded fund (ETF) market, has made its first major sale of cryptocurrency-related stocks this year. The firm divested itself of over 214,000 shares in Coinbase and nearly 120,000 shares in Robinhood across its ETF portfolios on Feb. 14. This move is a significant change in ARK’s investment strategy.
Sale Concentrated in ARK Innovation ETF
The majority of the sale occurred within the ARK Innovation ETF (ARKK), with over 152,000 Coinbase shares being sold. The ARK Fintech Innovation ETF (ARKF) and the ARK Next Generation Internet ETF (ARKW) also participated in the sale.
Approximately $34 Million Generated
The combined sales of Coinbase shares generated around $34 million, based on Coinbase’s closing price on Feb. 14. This sale took place as Coinbase’s stock price surged towards its previous high.
Strategic Adjustment in Portfolio Management
The divestiture of Robinhood shares aligns with Rule 12d3-1, limiting ETF investments in certain securities. This move represents a strategic adjustment in ARK’s portfolio management and contrasts with their recent acquisition of Robinhood shares.
ARKB Increases Bitcoin Holdings
The ARK 21Shares Bitcoin ETF (ARKB) has increased its Bitcoin holdings by purchasing an additional 1,960 BTC on Feb. 15. This raises ARKB’s total Bitcoin allocation to approximately $1.3 billion.
Positive Performance Despite Sales
Despite the positive performance of both Coinbase and Robinhood stocks, ARK Invest decided to sell its shares. Coinbase has experienced a 19% increase in value leading up to its fourth-quarter earnings report, while Robinhood has reported a 10% growth in its crypto revenue for the quarter.
Conclusion
ARK Invest, a key player in the US Bitcoin ETF market, has made a significant shift in its investment strategy by selling cryptocurrency-related stocks. The sale of over 214,000 shares in Coinbase and nearly 120,000 shares in Robinhood across its ETF portfolios generated around $34 million. This move aligns with ARK’s portfolio management adjustments and Rule 12d3-1 limitations. Despite the positive performance of both Coinbase and Robinhood stocks, ARK Invest decided to divest itself of these assets. On the other hand, ARKB increased its Bitcoin holdings, demonstrating ARK’s ongoing commitment to cryptocurrency investments and faith in Bitcoin.
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