Cathie Wood’s Ark Invest Unloads $16M in Coinbase Shares Amid Market Volatility

Cathie Wood’s Ark Invest has opted to reduce its exposure to Coinbase and Robinhood, selling a significant portion of its shares in both companies amidst market volatility. The total value of the shares unloaded comes in at about $16 million.

The move is reminiscent of Ark Invest’s action in early January when it dumped $25.3M worth of Coinbase shares.

Coinbase Volatility a Scare for Ark Invest?

According to the latest trade filing from Ark Invest, the investment management firm offloaded a total of 96,435 Coinbase shares across three of its exchange-traded funds, amounting to approximately $16 million in sales.

This decision is coming at a period of substantial price fluctuations for Coinbase, which saw its stock surge more than 30% over the past month but ended the week down more than 12%.

The breakdown of Coinbase shares sold by Ark Invest includes 54,307 shares valued at $9 million) from its Innovation ETF, 28,222 shares worth $4.7 million from its Next Generation Internet ETF, and 13,906 shares estimated at $2.3 million from its Fintech Innovation ETF.

Despite Coinbase’s strong performance over the past year, with its stock up approximately 160%, it remains more than 50% down from its all-time high reached during the peak of the crypto bull market in November 2021.

Ark Invest Knocks off Robinhood Shares

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

Robinhood’s stock similarly experienced significant volatility as it closed the week at $14.48 per share, marking an increase of nearly 8% and 30% over the past month.

Ark Invest’s Proactive Approach to Portfolio Management

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

Coinbase has put up a strong fourth-quarter performance, shocking analysts’ revenue expectations. Thus, Ark Invest’s move highlights the firm’s proactive approach to managing its investment portfolio amidst dynamic market conditions.