Ark Invest, led by Cathie Wood, sold 108,751 shares of its ARKB spot Bitcoin ETF, Next Generation Internet ETF (ARKW), on Thursday, valued at $6.9 million.
Ark Invest Sells $6.9 Million Spot Bitcoin ETF and Coinbase Increases Share Sales
Although spot Bitcoin ETFs generated net inflows of $50.6 million on August 1, ARKB issued by Ark and 21Shares saw net outflows totaling $22.4 million.
In addition to reducing its Bitcoin ETF holdings, Ark Invest also accelerated its Coinbase stock sales.
The firm issued 31,517 shares of ARKW valued at $6.7 million and 37,552 shares of the Fintech Innovation ETF (ARKF) valued at $8 million, following a $2.7 million sale of COIN shares on Wednesday, according to its latest transaction filing.
Ark's investment strategy generally ensures diversification of its funds by preventing a single holding from exceeding 10% of the ETF portfolio. This policy means the firm can continue to rebalance asset weights as ARKB and COIN increase in value relative to other assets.
As of August 2, ARKB is the largest asset within ARKW, with a value of $142.4 million, which constitutes 10.6% of the fund portfolio.
Coinbase stock, which represents the fourth largest holding in ARKW with 6.7% ($90.4 million), is Ark's largest holding with 9.7% ($77.4 million) in ARKF.
On Thursday, ARKB traded at $63.20, down 3% on the day but up 26.4% year-to-date.
Coinbase shares closed at $212.64, down more than 5% on the day. The stock has gained 22.9% year to date but is still 38% below its all-time high of $342.98 reached in November 2021.
Coinbase recently reported Q2 revenue of $1.45 billion, an 11% decline compared to Q1, with the decline partially attributed to a decline in consumer transactions amid market corrections. The company is currently valued at $41.7 billion.
*This is not investment advice.
