In a strategic move during a broad market downturn, Ark Invest, led by Cathie Wood, acquired nearly $18 million worth of Coinbase shares on Monday. The investment firm purchased a total of 93,797 Coinbase shares across three of its exchange-traded funds (ETFs), as the cryptocurrency market and broader financial markets experienced significant turbulence.
According to the firm’s latest trade filing, Ark Invest acquired:
- 65,165 shares from its Innovation ETF (ARKK), valued at $12.3 million.
- 13,003 shares from its Next Generation Internet ETF (ARKW), worth $2.5 million.
- 15,629 shares from its Fintech Innovation ETF (ARKF), totaling $3 million.
This purchase marks Ark’s first significant buyback of Coinbase shares since June 2023, when it acquired $21 million worth of the stock. Following that acquisition, Coinbase’s share price surged more than 250%, prompting Ark to sell portions of its holdings over time.
Ark Invest’s strategy typically involves keeping individual holdings within its ETFs below 10% of the total portfolio to ensure diversification. This approach suggests that Ark may continue to adjust its position in Coinbase depending on the stock’s performance relative to other holdings.
On Monday, Coinbase shares fell 7.3% to $189.47 by market close, reaching their lowest level since February. This drop reduced the stock’s year-to-date gains from over 75% at one point to just 9.5%, according to TradingView. Despite the decline, Coinbase shares remain up 113% over the past year but are still 45% below their all-time high of $342.98 set in November 2021.
As of August 5, Coinbase is valued at $35.2 billion. In Ark’s portfolios, Coinbase now ranks as the third-largest holding in the ARKK ETF with an 8.6% weighting, worth $441 million. It is the fourth-largest holding in the ARKW fund at 6.7%, valued at $82.5 million, and the largest holding in the ARKF fund at 9.7%, amounting to $72 million.
In addition to purchasing Coinbase shares, Ark Invest also bought 681,885 shares of Robinhood for $11.2 million across the same three funds. Robinhood’s stock fell 8.2% by market close, and the trading platform temporarily halted 24-hour trading amid market volatility.
Ark made some strategic sales as well, offloading 454,775 shares of Block, valued at $26 million, as the stock declined 5.3%. The firm also sold $3.4 million worth of the ProShares Ethereum Futures ETF (EETH) and over $484,000 worth of its own Ethereum Futures ETF (ARKZ), both of which fell nearly 20% during the day.
The broader cryptocurrency market saw Bitcoin briefly dip below $50,000, while Ethereum fell below $2,200 before recovering. Bitcoin is currently trading at $55,156, up 6.2% over the past 24 hours, while Ethereum is priced at $2,460, gaining 7.4% over the same period. The GMCI 30, which tracks the top 30 cryptocurrencies, rose 8.7% to 105.84.
Ark Invest’s actions highlight its ongoing commitment to capitalize on market fluctuations and position its portfolios for long-term growth despite short-term volatility.
