Ark Invest sells $6.9 million of its own spot Bitcoin ETF, ramps up Coinbase share sales
Quick Take
- Ark Invest offloaded 108,751 ARKB spot Bitcoin ETF shares on Thursday, worth $6.9 million, as the investment firm rebalanced its fund weightings.
- The Cathie Wood-led firm also ramped up its Coinbase share sales, offloading another $14.7 million worth of COIN.
Ark Invest sold 108,751 shares of its ARKB spot Bitcoin exchange-traded fund, worth $6.9 million, from its Next Generation Internet ETF (ARKW) on Thursday.
The Ark and 21Shares-issued ARKB witnessed a total of $22.4 million in net outflows on Aug. 1 despite the spot Bitcoin ETFs generating $50.6 million in combined net inflows.
The Cathie Wood-led investment firm also ramped up sales of Coinbase stock yesterday, offloading 31,517 shares ($6.7 million) from ARKW and 37,552 shares ($8 million) from its Fintech Innovation ETF (ARKF) after selling $2.7 million worth of COIN on Wednesday, according to the company’s latest trade filing.
Ark’s investment strategy involves letting no individual holding take up more than 10% of an ETF’s portfolio. This is to maintain diversification within its funds, meaning it is likely to continue rebalancing its asset weightings if ARKB and COIN gain in value relative to Ark's other holdings in the fund.
According to the firm’s disclosures, ARKB is the largest holding within its ARKW ETF, with a weighting of 10.6%, worth $142.4 million, as of Aug. 2. COIN is the fourth-largest holding in the fund at 6.7%, worth $90.4 million. Coinbase shares represent Ark’s largest holding in its ARKF fund at 9.7%, worth $77.4 million.
ARKB traded for $63.20 at market close on Thursday, down 3% for the day but up 26.4% year-to-date, according to TradingView. Bitcoin traded flat over the past 24 hours, currently changing hands for $64,439, according to The Block’s Bitcoin Price Page.
ARKB/USD price chart. Image: TradingView.
Coinbase’s stock traded for $212.64 at market close yesterday, down more than 5%, according to TradingView. The stock has gained 22.9% year-to-date but remains 38% below its prior all-time high of $342.98, set in November 2021.
Coinbase reported $1.45 billion in Q2 revenue on Thursday, an 11% decrease from Q1, partially driven by falling consumer transactions amid corrections in the crypto market.
COIN/USD price chart. Image: TradingView.
Coinbase is currently valued at $41.7 billion, according to The Block’s data dashboard.
Ark also sold 282,435 Robinhood shares from its Innovation ETF (ARKK) on Thursday, worth $5.7 million.
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