Ark Invest Trades in Coinbase and Robinhood Stocks

Ark Invest purchased 12,994 Coinbase shares, valued at $2.2 million, for its Fintech Innovation ETF (ARKF) on Tuesday and sold $36.4 million in Robinhood shares amid differing market performance for these trading apps.

This marks the first acquisition of Coinbase shares for Ark since they bought $8.4 million worth on Sept. 11, during a price decline in the crypto market following the U.S. presidential debate, where bitcoin dipped below $55,000.

Ark’s investment strategy limits individual holdings to no more than 10% of an ETF’s portfolio to ensure diversification. This indicates that they may adjust the weighting of Coinbase stock based on its value changes relative to other holdings in their funds.

Coinbase is now the second-largest holding in the ARKF ETF, following Shopify, with a 7.4% weighting worth approximately $64 million as of Oct. 9. Coinbase holds a valuation of $31.2 billion according to The Block’s data dashboard.

Coinbase vs. Robinhood Stock Performance in 2024

Cathie Wood's firm sold over 1.4 million Robinhood shares on Tuesday from three ETFs, totaling $36.4 million. This included:
– 1.1 million Robinhood shares ($28 million) from ARKK
– 191,445 shares ($4.9 million) from ARKW
– 135,665 shares ($3.5 million) from ARKF

Robinhood is now the fifth-largest holding in ARKF and the seventh-largest in both ARKW and ARKK, with weightings just below 5% and respective valuations of $42.5 million, $68.2 million, and $273.8 million.

This year presented contrasting results for the two stocks: Coinbase shares have decreased by over 33% over the last six months and exhibit a 3% negative return for 2024, closing down 0.7% at $167.68 on Tuesday. Conversely, Robinhood shares increased nearly 45% over the past six months, boasting a 101% return year-to-date, and closed up almost 10% at $25.62 on Tuesday.

Robinhood has recently expanded its initiatives, launching crypto transfers in Europe and planning a potential stablecoin. In June, it announced plans to acquire Bitstamp in a possible $200 million deal. Additionally, Politico reported that Robinhood's Chief Legal Officer Dan Gallagher might be considered for the next Securities and Exchange Commission chair if Donald Trump wins the presidential election.