TLDR
- Ark Invest sold $13.3 million in Coinbase shares and $8.7 million of its own bitcoin ETF after both assets hit record highs
- The sales were part of Ark’s rebalancing strategy to prevent any single holding from exceeding 10% of fund weight
- Coinbase closed at record $394.01 on Monday with market cap above $100 billion before falling to $388.02 on Tuesday
- Bitcoin hit new all-time high above $123,000 on Monday before dropping below $116,000 and recovering to $119,133
- Ark simultaneously bought $36.6 million worth of Tesla shares while reducing positions in Coinbase and Roku
Cathie Wood’s Ark Invest sold 34,207 Coinbase shares worth approximately $13.3 million from its Next Generation Internet ETF on Tuesday. The sale came after Coinbase stock hit a record closing price of $394.01 on Monday.
The investment firm also offloaded $8.7 million worth of its own spot Bitcoin ETF as part of routine portfolio rebalancing. Ark maintains a strategy of preventing any individual holding from exceeding 10% of a fund’s total weight.
Coinbase closed up 1.8% at the record high on Monday, pushing its market cap past $100 billion for the first time. The crypto exchange’s stock has surged 50% over the past month alone.
The rally has been boosted by Bitcoin’s all-time high run and partner Circle’s upcoming IPO. Coinbase shares fell 1.5% on Tuesday to $388.02, bringing its market cap to $98.6 billion.
According to Ark’s latest disclosures, Coinbase remains the second-largest holding in its ARKW fund with a 7.9% weighting worth $172.8 million. Robinhood holds the top position at 8% of the fund, valued at $175.5 million.
Bitcoin ETF Sales Follow Record Highs
Ark sold 225,742 shares of its own spot Bitcoin ETF (ARKB) on Tuesday, worth $8.7 million from the same Next Generation Internet fund. The sale occurred just one day after Bitcoin set a new all-time high above $123,000 on Monday.
Bitcoin subsequently dropped below $116,000 on Tuesday before recovering to current levels around $119,133. The cryptocurrency is up 25% year-to-date according to market data.
ARKB remains the fourth-largest allocation within Ark’s Next Generation Internet fund at 7.2% weighting, valued at approximately $157.2 million. Tesla and Roblox make up the remainder of the fund’s top five positions.
Ark’s ARKB saw net outflows of $6.2 million overall on Tuesday. The combined spot Bitcoin ETFs recorded $403.1 million in net inflows for the day, led by BlackRock’s IBIT with $416.3 million.
Tesla Purchases Continue Growth Strategy
While reducing crypto positions, Ark purchased 115,380 Tesla shares worth $36.6 million across its ARKK and ARKW ETFs on Tuesday. This continues a pattern of increasing Tesla holdings in recent trading sessions.
The firm also sold 68,040 Roku shares worth $6.1 million, indicating a strategic shift away from the streaming device company. Additional trades included biotechnology purchases and smaller position adjustments.
Bitcoin ETFs are currently on a nine-day inflow streak totaling $4.4 billion. Total net inflows since their January 2024 launch now reach $53.3 billion according to compiled data.
Ark’s spot Bitcoin ETF accounts for $2.9 billion of those cumulative net inflows, with $5 billion in assets under management. BRN Lead Research Analyst Valentin Fournier noted that Bitcoin has room to run before its cycle top.
The rebalancing trades reflect Ark’s ongoing portfolio management strategy as asset values fluctuate relative to other holdings in its funds.
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