April 19, 2024
ARK Invest's Strategic Portfolio Adjustments
Latest Cryptocurrency News

ARK Invest’s Strategic Portfolio Adjustments

In a strategic move, ARK Invest, spearheaded by veteran investor Cathie Wood, has begun divesting significant portions of stock from the cryptocurrency-friendly broker-dealer Robinhood (HOOD). According to a trade notification, on March 25, ARK unloaded 1.6 million Robinhood shares across three of its funds.

Significant Divestment Details

The trade amounts to $31.5 million, based on Robinhood’s closing price of $19.08 on Monday, as per TradingView data. The largest chunk of shares—1,247,181—was offloaded from the ARK Innovation ETF (ARKK), valued at approximately $24 million. Additionally, ARK divested 275,933 and 128,137 HOOD shares from the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF), respectively.

This divestment marks the most substantial sell-off since ARK began actively accumulating HOOD stock last year. Notably, these sales coincide with Robinhood’s recent success, with its price surging by 36% over the past 30 days.

ARKK’s top nine assets by value as of March 26, 2024. Source: ARK Invest

Portfolio Adjustments and Continued Investments

Despite offloading Robinhood shares, ARK has been strategically reallocating its investments. The firm has continued to increase its holdings in the online gaming platform Roblox (RBLX), acquiring 740,115 Roblox shares worth $27 million on March 25, as per TradingView data.

In addition to selling Robinhood stock, ARK has also divested Coinbase shares, selling 4,291 COIN on Monday, valued at approximately $21 million. This move follows the firm’s compliance with Rule 12d3-1, which regulates the acquisition of securities to prevent exceeding 5% of total asset value.

Robinhood’s Expansion and Latest Developments

Founded in 2013, Robinhood has expanded its offerings beyond traditional stocks to include cryptocurrencies like Bitcoin (BTC) and Ether (ETH), among others. On March 20, 2024, the company launched the Android version of its self-custodial wallet, the Robinhood Wallet app.

Conclusion

ARK Invest’s recent divestment of Robinhood shares underscores its dynamic investment strategy, capitalizing on market shifts while strategically reallocating assets. Meanwhile, Robinhood’s expansion into cryptocurrencies and the launch of its self-custodial wallet mark significant milestones in the company’s evolution within the fintech landscape.

Image by freepik

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