Ark Invest sold 70,616 shares of Coinbase stock worth $15.1 million across three exchange-traded funds on Tuesday.
The Cathie Wood-led investment firm has 45,915 shares ($9.8 million) in the Innovation ETF (ARKK), 17,755 shares ($3.8 million) in the Next Generation Internet ETF (ARKW), and 6,946 shares ($1.5 million) in the Fintech Innovation ETF ($1.5 million). sold for $1.5 million). ARKF), according to the company’s latest trading filings.
This is the first time Ark has sold a significant amount of Coinbase stock in nearly a month, after selling $20.4 million worth of COIN on April 11 due to the rising stock price. However, on April 15, the ARKW fund sold a relatively small amount of Coinbase shares (worth about $824,000).
Ark Invest’s Rebalancing Strategy
Ark’s investment strategy aims to ensure that individual holdings do not account for more than 10% of the ETF portfolio. This is to maintain diversification within the fund. This means that if Coinbase’s stock price rises relative to other holdings in Ark’s fund, it will likely continue to reweight.
According to the company’s latest disclosure, Coinbase is currently the third-largest holding within the ARKK ETF, accounting for 8.2%, behind Tesla and Roku, which account for 11.2% and 8.4%, respectively. Coinbase is the fourth largest holding in ARKW, holding 8.2%. This follows Ark’s own spot Bitcoin ETF (ARKB) at 10.2% of the fund, followed by Tesla and Roku at 8.5% and 8.3%. Coinbase currently ranks first within the ARKF ETF with a 10.4% weighting.
The market value of ARKK’s Coinbase holdings is $547 million. ARKW’s COIN weight is valued at $129 million at current prices, while ARKF’s is valued at $150 million. Overall, ARKK, ARKW, and ARKF funds are up about 24%, 55%, and 61%, respectively, over the past year.
Coinbase shares were trading at $214.34 at the close of trading on Tuesday, according to TradingView. Trading volume on this day fell more than 5%, but rose more than 7% over the past five trading days. The stock is up 24% year-to-date, but remains 37.5% below its previous all-time high of $342.98 set in November 2021.
COIN/USD price chart. Image: TradingView.
Coinbase is currently valued at $39.9 billion, according to The Block’s data dashboard.
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