Cathie Wood’s Ark Invest Dumps Over $15.1M Worth of Coinbase


Ark Invest, under the leadership of Cathie Wood, has garnered attention once again as it recently disclosed significant reductions in its Coinbase holdings (COIN).

Over $15 million worth of Coinbase shares (70,616) were sold across various Ark Invest Exchange-Traded Funds (ETFs), prompting speculation about Ark’s investment strategy and its potential implications for Coinbase’s stock performance.

Ark’s Consistent Dumping Strategy

According to the recent report, Ark Invest divested 45,915 shares, valued at about $9.8 million from its Innovation ETF (ARKK), and 17,755 shares worth $3.8 million were removed from its Next Generation Internet ETF (ARKW). Also, Ark Invest sold 6,946 Coinbase shares, worth $1.5 million from its Fintech Innovation ETF (ARKF).

However, one key aspect driving Ark Invest’s decision to trim its Coinbase holdings could be related to portfolio rebalancing. As part of this strategy, Ark regularly evaluates its holdings to ensure alignment with its investment thesis and target allocations. Ark could be reallocating capital to other promising opportunities within the crypto or broader technology space by selling a portion of its Coinbase holdings.

Furthermore, Cathie Wood has shared her intention to reinvest profits in their promising stocks, particularly in the life science sector. She emphasized the use of a dynamic investment approach to maximize returns. Also, Ark’s decision might reflect its outlook on Coinbase’s near-term prospects.

Ark Invest Diversifies Portfolio

Last month, Ark Invest offloaded $20.4 million worth of Coinbase shares while simultaneously adding OpenAI to its venture Fund. The dumping of over $20 million in Coinbase is consistent with Ark’s strategy of guaranteeing no individual holding occupies more than 10% of an ETF’s portfolio. Hence, preventing overexposure to specific assets.

Ark’s Venture Fund, a private fund distinct from its ETFs, made its first investment in Open AI. Wood stated that investors are exploring different options as some are now switching to Bitcoin from gold due to spot ETF.

However, a shift to Artificial Intelligence signals that Ark is taking a bullish outlook on the potential of AI technology to drive innovation across various industries. Analysts say AI technology holds prospects in the financial market and is a good pick for investors looking to diversify.

Ark Invest Knocks off Robinhood Shares

In addition to reducing its holdings in Coinbase, Ark Invest also offloaded 565,491 shares of Robinhood in February, amounting to around $8.2 million in sales. This contrasts with the investor’s move in December 2023 when it displayed confidence in the potential of Robinhood markets by acquiring its shares.

The recent decision of Ark Invest to trim its holdings in Coinbase and Robinhood is part of the firm’s efforts to rebalance its fund weightings in response to market fluctuations.

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