During the sale, Ark Invest strategically acquired 158,334 shares ($12.1 million) of Jack Dorsey’s Block Inc stock for its Next Generation Internet ETF.
Ark Invest, a well-known asset management firm led by Cathie Wood, has been making strategic adjustments to its portfolio, most notably in its trades with Coinbase Global Inc (NASDAQ: COIN) and Grayscale Bitcoin Trust (GBTC).
Ark Invest sold additional Coinbase shares, offloading a total of 149,780 COIN ($24.2 million) from the two funds as the stock hit a yearly high, according to the company’s latest trading filing.
Ark Invest Coinbase Sell
Ark Invest’s decision to sell Coinbase shares is consistent with its ongoing efforts to rebalance the fund’s weightings in response to the recent COIN price surge. As for specific details, the company sold 132,782 shares of Coinbase stock worth $21.5 million in the Innovation ETF and 16,998 shares worth $2.7 million in the Next Generation Internet ETF.
This follows a trend in which Ark Invest divested $5.5 million worth of Coinbase stock just a day earlier. Last month alone, Ark Invest sold more than $200 million worth of Coinbase stock, demonstrating a shift in its investment strategy.
According to TradingView, Coinbase’s recent performance has been impressive. The stock price has increased by 60% in the past month and has jumped by a whopping 344% since the beginning of the year. However, the stock price remains more than 50% lower than the all-time high set in November 2021.
Ark Invest’s latest moves extend to Grayscale Bitcoin Trust, which sold 398,383 shares of GBTC stock ($14.3 million) from its Next Generation Internet fund. This follows the sale of approximately $12.85 million worth of GBTC shares on December 11, reducing ARKW’s GBTC holdings to approximately $112.7 million, constituting a weighting of 6.95%.
GBTC shares closed at $35.83 on Wednesday, reflecting a daily gain of 2.6%, a 23% surge over the past month, and an impressive 336% year-to-date growth. In particular, the price of GBTC also rose along with the surge in the underlying asset value of Bitcoin (BTC), which is currently trading at $44,187.
Ark’s decision to sell prominently GBTC shares could be influenced by GBTC’s recent discount to net asset value (NAV), which has declined from more than 40% in June to about 7.6%, according to YCharts.
Ark Invest Increases Block Stake
During the sale, Ark Invest strategically acquired 158,334 shares ($12.1 million) of Jack Dorsey’s Block Inc (NYSE: SQ) for its Next Generation Internet ETF.
This follows a $26 million purchase of Block stock earlier this week. Block shares closed at $76.11, down 1.6% for the day but up 31% in the past month and 15% year-to-date. The move signals Ark’s confidence in the block’s growth potential, especially after the company reported a 22% increase in Bitcoin gross profits in the third quarter. It is unclear whether Ark Invest will resume COIN accumulation in the future, but Block’s exposure still leaves the company exposed to the cryptocurrency landscape.
As the cryptocurrency market continues to evolve, Cathie Wood’s Ark Invest is at the forefront of aligning holdings to seize opportunities and effectively manage risk.
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