ARK Invest Sells $31M in Block Shares as Crypto Market Gathers Momentum

As a seasoned analyst with over two decades of experience in the financial markets, I find ARK Invest’s recent decision to sell its shares in Block Inc intriguing. While it is a strategic move to take advantage of the stock’s recent performance gains, it seems like they are playing a game of cat and mouse with Block.


Ark Invest, the asset management firm recognized for its cryptocurrency and tech-focused investments, led by Cathie Wood, might have recently unloaded a substantial number of shares in Jack Dorsey’s financial services company, Block Inc. The total shares sold, split across two of their main funds, amounted to 418,556.

Based on information from TradingView, it’s reported that a transaction occurred on October 28th, resulting in ARK earning around $31 million. Essentially, this significant income was due to the company capitalizing on the positive trends in the stock, which coincided with a general increase in the crypto market.

To provide clarity, the trade encompassed shares from two significant ARK funds: the ARK Innovation ETF disposed of 272,842 Block shares, and the ARK Next Generation Internet ETF sold 145,714 shares.

On the day of the sale, ARK Invest pocketed approximately $31.18 million as Block’s shares ended at $74.5. Notably, Block, the company behind Cash App and Square, is well-known for its contributions to financial services and promoting the use of Bitcoin.

Starting from May, Jack Dorsey, one of Block’s co-founders, disclosed their strategy of regularly buying Bitcoin using some of their profits earned from Bitcoin-related activities. This monthly investment has led to an increase in Block’s stock price, with a rise of approximately 13% just this month. It is believed by many that this uptrend could be strongly associated with the continued growth and optimism within the crypto market.

Ark Invest Scales Back on Block Shares, Boosts Bitcoin ETF amidst Bullish Crypto Trends

Instead of decreasing its involvement in Block, ARK could be shifting focus towards its own Bitcoin ETF, the ARK 21Shares Bitcoin ETF (ARKB), which makes sense considering the growing hype around Bitcoin and the ongoing ‘Uptober’ phenomenon.

On a Monday transaction, the ARK Fintech Innovation ETF bought approximately 6,698 more shares of ARKB, which equated to around $466,000 based on the fund’s closing price of $69.6 per share.

Unlike Block, whose value hasn’t significantly changed from its initial 2024 price, ARKB has experienced a notable rise of approximately 39% so far this year.

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2024-10-29 15:21