Ark Invest Rebalances Crypto Holdings as Market Weakness Deepens

Ark Invest led by Cathie Wood has once again made  notable changes to its crypto-related investments. On February 5 the investment manager reportedly adjusted its portfolio during a wider market downturn. 

The firm increased its position in Bullish while reducing its exposure to Coinbase. This move signals a strategic rebalance as crypto stocks and digital assets faced renewed selling pressure.

Ark Invest Buys Bullish Shares, Sells Coinbase

According to Ark Invest’s latest trading disclosures, the firm bought a total of 716,030 shares of Bullish across three of its exchange-traded funds (ETFs). Based on Thursday’s closing prices, the purchases were valued at about $17.8 million.

The move came despite Bullish shares experiencing sharp declines in recent weeks. On the same day the purchase happened, Bullish’s stock fell 8.5% to close at $24.90. This extended its losses for the month to nearly 40%, reflecting broader weakness across crypto-related equities.

At the same time, Ark Invest increased its stake in Bullish while cutting back on Coinbase. The firm sold 119,236 Coinbase shares worth about $17.4 million, roughly the same amount it invested in Bullish.

This suggests a deliberate shift rather than a reduction in overall crypto exposure. This sale comes just weeks after Ark Invest increased its Coinbase holdings. On January 25, the firm bought about $9.4 million worth of Coinbase shares.

Coinbase shares also faced heavy selling pressure. The stock dropped 13.3% on the same day to $146.12, bringing its monthly losses to more than 41%.

Crypto Market Decline Weighs on Bitcoin, Ethereum, and Related Stocks

The trading activity happened during a period of clear weakness across the crypto market. Bitcoin (BTC) dropped to around $60,000 at one point on Thursday. By Friday, Bitcoin recovered slightly and moved back above $65,000, but it remained well below its recent highs.

Ethereum (ETH)also saw heavy losses. Its price fell by 11.6% within 24 hours, pushing it down to around $1,900. This sharp drop added to the negative mood in the market and increased pressure on crypto-related investments.

The share prices of Bullish and Coinbase moved in the same direction as the broader crypto market. 

ARK’s Long-Term Crypto Thesis Remains Firm

Despite the ongoing market turmoil, Ark Invest has maintained a keen interest in the crypto market with a bullish forecast for its potential. 

According to Ark, the digital asset market could soar to a $28 trillion by 2030, driven by gains in Bitcoin. This bold prediction requires the current crypto market to record a 61% growth over the next five years.

As per the analysis, by 2030,, around 20.5 million Bitcoin are expected to be mined. If Bitcoin captures about 70% of the $28 trillion market, its total value could reach roughly $19.6 trillion. So, Ark’s investment in crypto shares is driven by a clear strategy.