In December, ARK Invest, led by Cathie Wood, continued selling off its holdings in Coinbase (COIN), totaling $196.8 million. The move is part of ARK Invest’s strategy to cap individual company holdings at around 10% of its overall portfolio, even as COIN’s value saw a 30% rally since late November.
As COIN’s value soared, ARK Investment strategically reduced its exposure, aligning with its policy to cap individual company holdings at approximately 10% of its overall portfolio. ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW) collectively shed 149,780 COIN shares, signaling a calculated approach to managing risk and maintaining a diversified portfolio.
ARK Invest’s Other Smart Moves
In addition to selling COIN shares, ARK Next Generation Internet ETF (ARKW) also reduced its position in the Grayscale Bitcoin Trust (GBTC) by 398,383 shares. Meanwhile, they increased their holdings in Block (SQ) by 158,334 shares, a company that facilitates cryptocurrency payments through its Cash App.
Hot Take: ARK Invest’s Strategic Moves
The recent moves by ARK Invest reflect its commitment to managing risk and maintaining a diversified portfolio, as the investment firm continues to reallocate its holdings in response to market dynamics and valuation differences.