Just about 11 days after it last sold about $4.3 million worth of Coinbase stock, Cathie Wood’s Ark Invest has dumped 12,077 COIN valued at $2.7 million. The dump came from part of its Next Generation Internet ETF (ARKW) into the crypto market.
Ark Invest and the Diversification Efforts
The strategic move aligns with the tradition of Ark Invest to keep the company’s funds as diversified as possible. As per the ETF portfolio, Ark Invest CEO had stated that part of the firm’s philosophy includes ensuring that no single holding accumulates above 10%.
Thus, the recent sales appear like a deliberate effort to implement this philosophy. That is, Ark Invest implementing measures to adjust its weightings in line with market prices and its other holdings and ensure a balance. It would seem that the decision to offload $2.7 million shares means other Ark Invest holdings in the overall funds have dropped significantly.
Notably, figures emerging from Ark Invest shows COIN stands at the fourth position in terms of holdings within its ARKW ETF. COIN currently has a weighting of 7.3%, behind only to Ark’s own spot Bitcoin ETF (ARKB) with 11% weightings, Tesla’s 10% and Roku’s 8.4%.
Meanwhile, ARKW has recorded a significant 33% increase overall as its current market worth surge to over $102 million. As per TradingView data, Coinbase’s stock price traded flat on Wednesday at $224.36 which leaves it about 35% lower than its all-time peak of $342.98 it registered way back in the last quarter of 2021.
Rebalancing Bitcoin and Ethereum ETFs
Last week, in a strategic move to rebalance its portfolio, Ark Invest also offloaded a total of $7.8 million Bitcoin ETF. The move marked the first time the firm would engage in an initial share sale in ARKB since the spot Bitcoin ETFs commenced trading in January.
Despite the success of the Bitcoin ETF, Ark Invest surprisingly pulled out of the Ethereum ETF race before the product could hit the market in late July. However, the firm cited reassessment of its investment strategy as reason for the move.
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