Ark Invest seems to be rearranging its investment portfolio and has continued to sell huge amounts of Coinbase, while acquiring Robinhood shares.
Cathie Wood’s investment firm, Ark Invest, made notable moves in its portfolio on Monday, marking a strategic shift in its crypto and fintech holdings. Ark Invest sold a substantial amount of its Coinbase Global Inc (NASDAQ: COIN) shares while increasing its position in Robinhood Markets Inc (NASDAQ: HOOD) and actively managing its exposure by also selling off its Grayscale Bitcoin Trust (GBTC) holdings.
Ark Invest’s Coinbase Sell-Off amid Surging Stock Prices
Cathie Wood’s Ark Invest offloaded 43,956 Coinbase shares worth about $5.3 million as the crypto exchange’s stock soared to its highest level in 18 months, hitting $121.67 in pre-market trading. This move comes amid Coinbase’s impressive 50% surge this month and a remarkable 228% increase year-to-date. Despite the recent pump, the stock remains down approximately 65% from its all-time high during the peak of the 2021 crypto bull market.
Simultaneously, Ark Invest increased its stake in Robinhood, acquiring 143,063 shares worth around $1.2 million for its Ark Fintech Innovation ETF. This move follows a previous purchase of 93,297 shares for its ARK Next Generation Internet fund on Friday. Despite Robinhood’s stock experiencing only a 3% increase for the year and an 8% drop this month, Ark’s continued investment in the company appears to align with the trading app’s plans for expansion in the EU and UK.
This isn’t the first time Ark Invest has sold its Coinbase shares. The firm has consistently trimmed its holdings throughout 2023, including a substantial offload of $103 million in July and a previous sell-off of 63,675 shares in October.
Generally, Coinbase has had a better year than Robinhood, climbing more than 238% since January. In the last year, the company’s stock has crossed the 177% mark. Furthermore, COIN has also gained more than 55% in the last month alone.
Managing Exposure to GBTC and Emerging Opportunities
Ark’s strategic maneuvers extend beyond Coinbase and Robinhood. The firm actively managed its exposure to Grayscale Bitcoin Trust (GBTC), selling 94,624 shares for roughly $3 million. This follows a consistent trend of shedding GBTC shares over recent months.
Contrary to speculation about a lack of bullish sentiment in Bitcoin or preparation for its spot Bitcoin ETF, Ark Invest’s actions are viewed by analysts, such as Bloomberg’s Eric Balchunas, as part of a broader strategy to rebalance its portfolio and maintain desired weightings. This approach involves selling high-performing assets while exploring emerging opportunities.
Impact of Ark Invest’s Move on the Broader Crypto Space
Ark Invest’s strategic moves echo broader trends within the crypto and fintech sectors. As Coinbase’s stock keeps soaring to an 18-month high following news of regulatory issues surrounding rival Binance, investors are recalibrating their positions in key assets. Additionally, the continuous evolution of regulations and market dynamics has forced companies to employ a dynamic crypto portfolio management approach.
Ark’s actions in shedding Coinbase and GBTC shares while accumulating positions in companies like SoFi and Robinhood underscore its willingness to navigate the evolving crypto landscape. The company is evidently interested in exploring emerging opportunities within fintech and crypto-related ventures.