Cathie Wood’s ARK Invest Offloads ARKB and COIN Holdings

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As a seasoned researcher with years of experience in the financial markets, I find the recent moves by ARK Invest quite intriguing. The firm’s decision to offload significant amounts of Bitcoin ETF shares and Coinbase stock suggests a strategic move towards maintaining diversification within its funds. This is not unexpected given Ark’s well-known investment strategy that aims to limit any individual holding to less than 10% of an ETF’s portfolio.

To adjust the distribution of its investments, prominent asset management company ARK Invest recently sold 108,751 shares of its Bitcoin ETF (ARKB). This action was taken on Thursday and amounted to roughly $6.9 million worth of assets withdrawn from its Next Generation Internet ETF (ARKW), as led by Cathie Wood.

ARK Invest Aims to Maintain Diversification in Its Fund

Last week saw Ark Invest parting ways with a significant 118,209 shares of ARKB, amounting to a substantial $7.76 million. Simultaneously, the spot Bitcoin ETF experienced a $22.4 million outflow on Thursday, August 1. Interestingly, other Bitcoin ETFs collectively witnessed a net inflow of $50.6 million during the same period.

The investment company, led by Cathie Wood, disposed of a significant portion of its Coinbase Global Inc (NASDAQ: COIN) shares last Thursday. Specifically, it divested 31,517 shares worth $6.7 million from ARKW and an additional 37,552 shares valued at $8 million from the Fintech Innovation ETF (ARKF). This represents the largest single-day sale of COIN shares since May 7. In fact, this single day’s transaction exceeded the total amount sold in the entire months of June and July combined.

Yesterday, ARK Invest sold approximately 2.7 million dollars’ worth of COIN shares, as indicated in their latest trade filing. In the month of July alone, they offloaded a total of 7.93 million dollars’ worth of COIN stock. Similarly, in June, they liquidated around 2.88 million dollars’ worth of COIN shares.

As someone who has spent years navigating the complex world of investing, I firmly believe that diversification is key to success. My personal experience has shown me time and time again that putting all your eggs in one basket can be a recipe for disaster. That’s why I wholeheartedly endorse Ark Invest’s strategy of not allowing any individual holding to take up more than 10% of an ETF’s portfolio.

At present, ARKB holds the largest proportion within ARKW ETF managed by the asset firm, accounting for about 10.6% or roughly $142.4 million. In comparison, Coinbase’s stock COIN occupies a smaller 6.7%, positioning it as the fourth-biggest investment in the fund, with a value of approximately $90.4 million.

However, COIN represents Ark’s largest holding in its ARKF fund at 9.7%, worth $77.4 million.

Besides the leading position held by Ark’s Bitcoin ETF (ARKB), which accounts for 11% of the portfolio, the next significant holdings include stocks from Tesla Inc (NASDAQ: TSLA) representing 10%, shares of Roku Inc (NASDAQ: ROKU) amounting to 8.4%.

Coinbase Releases Q2 2024 Earnings Report

During Q2 2024, Coinbase published its earnings report, astonishing many market watchers with its strong results. This digital currency exchange surpassed the predictions made by financial analysts on Wall Street. Rather than the anticipated total revenue of $1.4 billion, the company actually earned $1.45 billion, thanks to a general increase in market growth.

As an analyst, I’m sharing some insights about Coinbase’s performance. In the recent quarter ending in Q2 2024, their subscription and service unit yielded a staggering $599 million in revenue, which contributed to a net income of approximately $36 million. Compared to Q2 2023, this represents a substantial growth from the $335.4 million generated during that period. It’s also important to note that even in Q1 2024, the unit had already brought in $510.9 million. This demonstrates a consistent and impressive revenue stream for Coinbase.

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2024-08-02 17:12