March 27, 2024
ARK Invest's Strategic Sell-Off in ETFs Tops $25 Million
Latest Cryptocurrency News

ARK Invest Executes $25 Million Coinbase Share Strategy

ARK Invest, spearheaded by the influential Cathie Wood, recently made a substantial move in the market by divesting more than $25 million worth of Coinbase (COIN) shares from two of its prominent exchange-traded funds (ETFs) on Wednesday. This strategic maneuver involved the sale of a significant total of 166,183 COIN shares meticulously culled from the Innovation ETF (ARKK) and Next Generation Internet ETF (ARKW), amassing a total valuation of $25.3 million, pegged against the closing price of the cryptocurrency exchange.

During this pivotal market action, Coinbase’s Nasdaq-listed shares experienced a notable decline of 2.96%, settling at $152.24 on Wednesday. This dip was reflective of a temporary pause in the crypto market’s bullish run and a corresponding slump in bitcoin’s performance. These fluctuations were, in part, attributed to market overheating, leading to a necessary adjustment through a leveraged flush.

ARK’s ETFs maintain a precise and deliberate targeted weighting strategy that ensures no single holding overshadows 10% of the fund’s overall value. Given COIN’s remarkable surge, doubling in value over the final three months of 2023, the stock consistently breached this threshold within both ARKK and ARKW. Consequently, Cathie Wood’s firm adopted a proactive approach, regularly engaging in the selling of shares from the cryptocurrency exchange to align with their investment strategy and uphold compliance.

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