Ark Invest recently offloaded 62,615 shares of Coinbase, valued at $15.1 million. The investment firm, led by Cathie Wood, made the sale across two of its exchange-traded funds on Friday, selling 52,295 shares from its Innovation ETF (ARKK) and 10,320 shares from its Next Generation Internet ETF (ARKW).
Ark Investโs Selling Strategy
- Ark Investโs strategy aims to prevent any single holding from exceeding 10% of an ETFโs portfolio to maintain diversification.
- If Coinbaseโs stock price continues to rise, Ark Invest is likely to rebalance its weightings to align with other holdings in the funds.
Coinbaseโs Position in ARKK and ARKW
- According to Ark Investโs disclosures, Coinbase is the second-largest holding in ARKK and ARKW.
- Coinbase has a weight of 9.36% in ARKK, behind Tesla at 9.48%, and 9.55% in ARKW, just below Arkโs Bitcoin ETF (ARKB) at 9.98%.
Market Value and Performance
- ARKKโs Coinbase holdings amount to $669 million, while ARKWโs COIN weightings are valued at $160 million at current prices.
- Overall, ARKK and ARKW funds have seen a 29% and 58% increase in the past year, respectively.
Coinbase shares have surged by 5% in pre-market trading, reaching $252.58. The stock closed at $240.90 on Friday, down 3.5% for the day and 8% for the week. Despite this, Coinbase remains up by 39% year-to-date and is approaching its previous all-time high of $342.98 set in November 2021.
Coinbaseโs Valuation
Currently valued at $44.8 billion, Coinbaseโs performance can be tracked on The Blockโs data dashboard.
Closing Thoughts on Ark Investโs Moves
Ark Investโs decision to offload Coinbase shares worth $15.1 million showcases its commitment to portfolio diversification and active management. By ensuring no single holding dominates its ETFs, Ark Invest aims to maintain a balanced and resilient investment strategy. As Coinbase shares continue to fluctuate, Ark Investโs strategic selling approach reflects its dedication to optimizing portfolio performance.
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