ARK Invest, led by Cathie Wood, recently offloaded a significant portion of its holdings in Coinbase, Inc. Last week, the investment manager sold 580,000 Coinbase shares, totaling approximately $149.85 million at market close.
The shares were divested from three of ARK’s exchange-traded funds (ETFs): the Innovation ETF, Next Generation Internet ETF, and Fintech Innovation ETF. This move marks one of the largest sell-offs by ARK since mid-February and the second-largest since July of last year.
As part of its ongoing effort to rebalance its ETFs, ARK aims to prevent any single holding from constituting more than 10% of an ETF’s portfolio. Given that Coinbase’s shares still make up more than 10% of ARK’s ETFs’ weight, it is expected that further sales of COIN will occur in the future.
Despite Coinbase’s shares trading more than 80% higher than in February, driven by a surge in the broader crypto market led by Bitcoin, ARK remains committed to its rebalancing strategy.
This strategic move underscores ARK’s proactive approach to portfolio management, ensuring diversification and risk mitigation across its ETFs.