Ark Invest Coinbase Shares Continue To Be Reduced Targeting 10% Of Company’s Holding

Key Points:

• Ark Invest Coinbase shares continued to lose weight from its ETFs on February 14, adjusting its portfolio balance.
• Ark Invest purchased more than $500K worth of Robinhood shares on February 13, following the latter’s positive quarterly results.

Cathie Wood’s ARK Invest continued its strategic portfolio adjustments by selling a substantial portion of Coinbase (COIN) shares from its Innovation exchange-traded fund (ETF) on Wednesday.

Ark Invest Coinbase Shares Continue to Decrease Amid Portfolio Adjustments

According to data from Ark Invest Daily, the investment firm offloaded a total of 214,068 COIN shares on February 14. This divestment included 152,600 shares from the ARKK Fund, 31,459 shares from the ARKW Fund, and 30,009 shares from the ARKF Fund.

Meanwhile, on February 13, Ark Invest made a noteworthy move by purchasing 42,129 shares of Robinhood Markets, totaling over $500K. This marked the first acquisition after Robinhood reported better-than-expected quarterly results for the period ending December 31.

Specifically, the ARK Innovation ETF (ARKK) acquired 35,939 HOOD shares, while the ARK Next Generation Internet ETF (ARKW) added 6,190 HOOD shares to its portfolio.

Coinbase’s Surging Rally Prompts Portfolio Rebalancing by ARK Invest

The decision to reduce Ark Invest Coinbase shares comes as no surprise, given the significant rally in COIN stock over the past months, with its price surging by over 130% in the last quarter of 2023 alone.

This surge resulted in Ark Invest Coinbase weighting in ARK’s Innovation ETF (ARKK) exceeding the targeted maximum of 10%. In February 2024, COIN recorded a further increase of nearly 20%, prompting Ark Invest to rebalance its portfolio accordingly.

Ark Invest typically trims its holdings in high-performing companies like Coinbase to maintain a diversified portfolio, adhering to its policy of limiting exposure to individual companies to around 10% of total holdings. Despite the reduction, Ark Invest Coinbase shares weighting remains above the target level in both ARKK and ARKW.