Ark Invest, led by Cathie Wood, has sold 108,751 shares of its ARKB spot Bitcoin exchange-traded fund (ETF), valued at $6.9 million, from its Next Generation Internet ETF (ARKW) on Thursday. Despite the spot Bitcoin ETFs generating $50.6 million in combined net inflows, ARKB experienced $22.4 million in net outflows on August 1.
In addition to the ARKB sale, Ark Invest ramped up sales of Coinbase stock, selling 31,517 shares ($6.7 million) from ARKW and 37,552 shares ($8 million) from its Fintech Innovation ETF (ARKF) after selling $2.7 million worth of COIN on Wednesday, according to the firm’s latest trade filing.
Ark’s investment strategy includes ensuring no individual holding exceeds 10% of an ETF’s portfolio to maintain diversification. This policy means Ark will continue rebalancing its asset weightings as ARKB and COIN appreciate relative to other holdings.
As of August 2, ARKB is the largest holding within ARKW, with a weighting of 10.6% and valued at $142.4 million. COIN is the fourth-largest holding in ARKW at 6.7% ($90.4 million) and the largest holding in ARKF at 9.7% ($77.4 million).
Coinbase reported $1.45 billion in Q2 revenue on Thursday, an 11% decrease from Q1, driven by a drop in consumer transactions amid market corrections. Currently, Coinbase is valued at $41.7 billion.
Ark also sold 282,435 Robinhood shares from its Innovation ETF (ARKK) on Thursday, worth $5.7 million.