Ark Invest sold $5.3 million in Coinbase shares and bought $1.2 million in Robinhood amid shifting crypto market dynamics.
Recently, Cathie Wood’s Ark Invest has adjusted its portfolio in the cryptocurrency sector. This involved selling a significant portion of Coinbase shares and concurrently purchasing shares of Robinhood.
Ark Invest sold 43,956 shares of Coinbase, equating to approximately $5.3 million. This sale occurred as Coinbase’s stock value soared to its highest in the past 18 months. In contrast to this divestment, Ark Invest displayed confidence in Robinhood by acquiring 143,063 shares, valued at around $1.2 million, for its Ark Fintech Innovation ETF. Additionally, Ark further invested in Robinhood by adding 93,297 shares, worth $780,000, to its ARK Next Generation Internet fund last Friday.
Coinbase’s stock has seen a significant surge, trading at $120.69 in pre-market sessions. This represents a more than 50% increase this month and a 228% rise year-to-date, reaching its highest point since April 2022. Despite this impressive growth, Coinbase’s stock remains about 65% below its peak of $342.98, witnessed during the crypto bull market peak in November 2021.
Bitcoin’s Rally and Ark’s Strategic Moves
The decision to reduce holdings in Coinbase by Ark Invest coincides with Bitcoin’s rally to new yearly highs. Currently, Bitcoin trades at around $37,000. Simultaneously, Ark Invest has shown increasing interest in Robinhood, whose stock is priced at $8.41 in pre-market trading. Despite a more than 8% decline this month, Robinhood’s stock has marginally increased by 1.57% year-to-date. The stock remains significantly lower than its peak of $55.01 in August 2021 but has risen approximately 16% from its all-time low.
Robinhood’s expansion into the EU and UK, announced earlier this month, likely influenced Ark’s investment decision, despite Robinhood’s less-than-stellar Q3 results. These expansion plans appear to align with Ark Invest’s strategy, focusing on companies with potential for growth and innovation in the fintech sector.
In addition to these significant trades, Ark Invest also sold 94,624 shares of the Grayscale Bitcoin Trust (GBTC) from its ARKW fund, amounting to about $2.8 million. GBTC shares are trading at $30.04 in pre-market sessions. This move comes amidst a narrowing discount to the net asset value (NAV) for GBTC, a critical metric for investors. The discount to NAV, which indicates the difference between the market price and the actual value of the bitcoin per share, has recently decreased to below 10% for the first time in two years, standing at 8.78%.