Cathy Wood’s investment firm, Ark Invest, has made significant strides in its holdings of Coinbase stock, selling over $50 million in shares as the cryptocurrency exchange’s shares continue to rally.
This is the second time in a week that Ark Invest has reduced its stake in Coinbase, reflecting management’s active approach amid a backdrop of regulatory developments and industry optimism.
At the same time, Ark Invest has been actively investing in other notable companies, including Meta Platforms and Robinhood.
Ark Invest is cashing in at the Coinbase Rally
Ark Invest, led by Cathy Wood, Sold A total of 478,356 Coinbase shares on Friday, worth more than $50 million. Sales were distributed across Ark’s flagship fund, the Ark Innovation ETF, which sold 263,247 shares, the Ark Next Generation Internet ETF, which sold 93,227 shares, and the Ark Fintech Innovation ETF, which offloaded 121,882 shares.
The decision comes on the heels of Coinbase’s role as watch-sharing partner for several spot Bitcoin ETF applicants, including industry giants BlackRock and Fidelity. Furthermore, recent legal rulings regarding the state of the XRP cryptocurrency have added to the optimism of the industry in general.
However, despite the sales, Ark Invest remains the second largest holder of Coinbase shares, owning 6.30% of the shares.
Ark Invest offloads shares as price recovers | Source: Coinbase Global, Inc., on Tradingview.com
Looking into the future with Meta Platforms and Robinhood
While reducing Coinbase’s holdings, Ark Invest has also been actively investing in other neighboring crypto companies. The company has begun buying shares in Meta Platforms (formerly Facebook) and Robinhood. In June, the Ark Innovation ETF acquired 69,793 Meta shares, while the Ark Fintech Innovation ETF purchased 111,843 shares of Robinhood.
Additionally, the Ark Next Generation Internet ETF increased its holdings with 12,559 Meta shares and 169,116 Robinhood shares. These strategic investments reflect Ark Invest’s ongoing strategy to navigate the evolving digital asset market.
Ark Invest’s decision to dilute its holdings of Coinbase after major acquisitions during market volatility and regulatory challenges illustrates a measured approach to securing profits amid the stock’s impressive rally this year and signals a calculated effort to secure earnings while the stock is up.
It also demonstrates the company’s commitment to diversifying its portfolio for long-term growth potential, as evidenced by its investments in Meta Platforms and Robinhood.
As the cryptocurrency market continues to evolve, Ark Invest’s actions will be closely watched by market participants, looking for insights and guidance in navigating this dynamic landscape.
Featured image from Crypto News, chart from Tradingview.com
