Ark Invest’s Recent Coinbase Purchase

Ark Invest bought 93,797 Coinbase shares worth $17.8 million across three exchange-traded funds on Monday amidst a broad market price plunge.

According to the company’s latest trade filing, the Cathie Wood-led investment firm purchased:
– 65,165 shares ($12.3 million) for its Innovation ETF (ARKK)
– 13,003 shares ($2.5 million) for its Next Generation Internet ETF (ARKW)
– 15,629 shares ($3 million) for its Fintech Innovation ETF (ARKF)

This marks Ark’s first buy of Coinbase shares since it acquired $21 million worth of COIN in June 2023. The stock rose over 250%, prompting Ark to offload shares several times during that period.

Ark’s investment strategy limits individual holdings to no more than 10% of an ETF’s portfolio to maintain diversification. This suggests Ark is likely to rebalance its weightings in COIN based on its performance relative to other holdings.

On Monday, Ark capitalized on market volatility tied to U.S. recession fears and geopolitical tensions. Coinbase shares fell 7.3% to $189.47, marking the lowest level since February. This drop reduced its year-to-date gains to just 9.5%, after previously peaking over 75%. Despite this, the stock remains up 113% over the past year but is still 45% below its all-time high of $342.98 from November 2021.

Coinbase is currently valued at $35.2 billion as of August 5. Disclosures show COIN is now the third-largest holding in Ark’s ARKK ETF at 8.6%, worth $441 million. It ranks fourth in ARKW at 6.7%, valued at $82.5 million, and is the top holding in ARKF at 9.7%, worth $72 million.

Ark’s Additional Investments

Ark also bought 681,885 shares of the trading app Robinhood for $11.2 million as the stock dropped 8.2%. In contrast, it sold 454,775 shares of Block worth $26 million, along with $3.4 million worth of ProShares Ethereum Futures ETF (EETH) and over $484,000 of its Ethereum Futures ETF (ARKZ), which both fell nearly 20%.

On Monday, Bitcoin plummeted below $50,000, while ether briefly lost its year-to-date gains, dropping below $2,200 before recovering. As of now, Bitcoin trades at $55,156, up 6.2% in the last 24 hours, while ether is at $2,460, gaining 7.4%. The GMCI 30, representing top cryptocurrencies, rose 8.7% recently.