Ark Invest Rebalances Holdings
Ark Invest, led by Cathie Wood, made a notable investment move this week, purchasing 41,032 shares of Coinbase (COIN) worth $8.7 million, while simultaneously selling $8.6 million worth of its own spot Bitcoin ETF (ARKB). This marks Ark’s first Coinbase purchase since October 2024.
The investment firm is known for dynamically adjusting its portfolio based on market conditions. Its decision to reduce exposure to Bitcoin ETFs while buying Coinbase shares reflects Ark’s strategy amid crypto market volatility.
Coinbase and Bitcoin Market Trends
Coinbase stock surged in late 2024 following Donald Trump’s pro-crypto election victory, peaking at $343.62 in December. However, COIN has since dropped 38%, mirroring Bitcoin’s decline from $109,000 to its current $85,800.
Despite the downturn, Ark continues to hold COIN as a key position, currently accounting for 5.5% of its ARKW fund.
Heavy Outflows from Bitcoin ETFs
Ark’s sale of 98,060 ARKB shares follows a period of record outflows from spot Bitcoin ETFs, totaling over $1 billion in a single day. Analysts suggest the sell-off was driven by market uncertainty, U.S. tariff concerns, and the aftermath of Bybit’s $1.5 billion hack.
Despite the sell-off, crypto remains up 50% year-over-year, signaling long-term market resilience.
