Ark Invest, led by Cathie Wood, sold an additional 106,000 shares of Coinbase across three of its exchange-traded funds (ETFs) on Tuesday. The shares were worth $27.2 million, according to the company’s trade filing. Here are the details:
Sale Details
- The Innovation ETF (ARKK) sold 66,387 shares of Coinbase worth $17.1 million.
- The Next Generation Internet ETF (ARKW) sold 9,123 shares worth $2.3 million.
- The Fintech Innovation ETF (ARKF) sold 30,490 shares worth $7.8 million.
Continued Rebalancing
This sale comes after Ark Invest sold $69 million worth of Coinbase shares on Monday. The investment firm is rebalancing its fund weightings due to the continued surge in Coinbase stock prices. So far this week, Ark Invest has offloaded nearly $100 million worth of Coinbase shares.
Investment Strategy
Ark Invest’s investment strategy focuses on maintaining diversification within its funds. The firm aims to prevent any individual holding from taking up more than 10% of an ETF’s portfolio. Despite the recent sales, Coinbase remains the largest holding within ARKK, ARKW, and ARKF ETFs:
- Coinbase’s current weightings in ARKK, ARKW, and ARKF are 10.9%, 12.1%, and 12.4%, respectively.
Current Market Value
Coinbase holdings in ARKK have a market value of $852 million, while ARKW and ARKF’s Coinbase weightings are valued at $211 million and $143 million, respectively. Overall, the ARKK, ARKW, and ARKF funds have seen impressive growth over the past year:
- ARKK: Up 67.6%
- ARKW: Up 96.9%
- ARKF: Up 93.3%
Coinbase Stock Performance
Coinbase stock has been performing well recently. It reached a yearly high of $256.14 at market close on Tuesday, marking a 12% increase over the past week and a 48% increase year-to-date. However, it is important to note that Coinbase stock is still down 25% from its all-time high of $342.98 set in the previous month.
Hot Take: Ark Invest Continues to Adjust Portfolio
Ark Invest’s recent sales of Coinbase shares demonstrate the firm’s commitment to maintaining diversification within its funds. By rebalancing its portfolio and preventing any individual holding from dominating, Ark Invest aims to manage risk effectively and take advantage of opportunities in the market.
Despite selling a significant amount of Coinbase shares this week, Ark Invest still holds substantial positions in the cryptocurrency exchange. The firm’s continued involvement in Coinbase indicates its confidence in the company’s long-term prospects.
The performance of Coinbase stock reflects the overall bullish sentiment towards the cryptocurrency industry. With its recent price surge and strong year-to-date gains, Coinbase remains an attractive investment option for many investors.
As Ark Invest adjusts its fund weightings and explores new investment opportunities, it will be interesting to see how its holdings evolve in the coming months. Investors should keep an eye on Ark Invest’s moves and consider the firm’s strategies when making their own investment decisions.
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