- For the first transaction in almost a month, Ark Invest purchased 12,944 Coinbase shares on Tuesday for a total of $2.2 million.
- In addition, Ark sold more than $36 million worth of Robinhood shares as the investing company kept adjusting the weightings of its funds.
In the midst of divergent market performance for the trading applications, Ark Invest offloaded $36.4 million in Robinhood stock on Tuesday and purchased 12,994 Coinbase shares, valued at $2.2 million, for its Fintech Innovation ETF (ticker ARKF).
Since purchasing $8.4 million worth of COIN on September 11 during a post-U.S. presidential debate price slump that saw bitcoin momentarily drop below $55,000, this is the first time Ark has purchased Coinbase shares with its assets.
According to Ark’s investment philosophy, no single holding should account for more than 10% of an ETF’s total portfolio. In order to preserve diversification within its funds, Ark will probably keep adjusting its weightings if the price of Coinbase stock fluctuates considerably in comparison to the other investments it has made in the funds.
With a weighting of 7.4% and a market value of approximately $64 million as of October 9, COIN is currently the second-largest position in the company’s ARKF ETF, behind Shopify stock, according to disclosures made by the firm. Coinbase’s current market worth is $31.2 billion, based on statistics from The Block.
The 2024 stock performance of Coinbase in comparison to Robinhood
Additionally, the investment business headed by Cathie Wood sold almost 1.4 million shares of Robinhood from three of its exchange-traded funds on Tuesday for a total of $36.4 million.
In particular, Ark sold off over 1.1 million Rohinhood shares (worth $28 million) from its Innovation ETF (ARKK), 191,445 shares (worth $4.9 million) from its Next Generation Internet ETF (ARKW), and 135,665 shares (of $3.5 million) from its Fintech Innovation ETF (ARKF).
At $42.5 million, $68.2 million, and $273.8 million in valuations, HOOD is currently Ark’s fifth-largest position in its ARKF ETF and seventh-largest in both its ARKW and ARKK funds, each with weightings of slightly less than 5%.
The two equities have experienced different fates this year. Despite a strong start to the year, Coinbase shares have dropped by more than 33% over the last six months, resulting in a negative return of 3% for 2024. According to TradingView, COIN closed Tuesday at $167.68, down 0.7%.
In the meantime, shares of Robinhood have increased by almost 45% over the last six months, for a 101% return so far this year. According to TradingView, HOOD ended Tuesday at $25.62, up over 10%.
Recently, Robinhood has increased its involvement in the sector; earlier this month, its cryptocurrency division launched cryptocurrency transfers in Europe and purportedly started working on a stablecoin.
Additionally, in June, Robinhood revealed intentions to pay up to $200 million to acquire Bitstamp, a cryptocurrency exchange. In the meantime, Politico revealed on Monday that, should Donald Trump win the US presidential election, Dan Gallagher, the chief legal officer of Robinhood, might be chosen to serve as the next chair of the Securities and Exchange Commission.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
