Skip to content
- ARK Invest buys 41,032 Coinbase shares for $8.7M amid ongoing cryptocurrency market decline.
- Despite recent volatility, ARK sells $8.6M in ARKB shares to manage crypto portfolio risks.
- ARK’s diversified strategy limits asset exposure, with Coinbase holding 5.5% of ARKW ETF.
ARK Invest has been very active in the cryptocurrency market in the current week, as this investment firm has made some significant changes to its positions amid declining market conditions. On Tuesday this year, the investment management company purchased 41,032 shares of Coinbase worth $8.7 million for its Next Generation Internet ETF (ARKW). This is the first time that ARK has invested in Coinbase since it purchased $2.2 million of the company’s stock on October 8, 2024, in preparation for a market bounce in advance of the US president election.
ARK’s Bitcoin ETF Adjustments
Even though Coinbase shares reached the high of $343.62 in December 2024, ARK increased its positions at the wrong time given that cryptocurrencies are under pressure. Coinbase has lost 6.42% in the last 24 hours; on the other hand, Bitcoin, the major player of the crypto sector, is down by only 1.02%. These are some of the losses that have been realized in the market over the past few weeks when several stocks recorded similar losses.
In parallel with the Coinbase transaction, ARK Invest made a somewhat less aggressive move – it disposed of its own spot Bitcoin ETF called ARKB for $8.6M. This sale was done to disposed off 98,060 shares of ARKB, the previous sale was held in September 2024 where the firm sold 44,609 at an average of $2.8 million. These changes are coming as a way for ARK to manage its cryptos portfolio given volatility of some of the assets.
ARK’s Diversification Strategy
It was established in 2024 and has experienced increased popularity among investors, and to date, the net inflows amounted to $ 2.7 billion, with total assets of $ 4.7 billion ($ 2 billion of equity and $ 2.7 billion of debt). Despite that, ARK has formulated a diversification policy whereby no investment is to be responsible for more than 10% of the fund. Currently, Coinbase owns 5.5% of ARKW stock or $94.4 million and is the sixth holder of the stock in the ETF.
These trades are consistent with the cyclical investment strategy adopted by ARK Investments due to volatilities that characterise this market. Although the investment value of the firm has dipped recently, the strategy depicted on the form portrays optimism with volatility. While both Coinbase and BTC suffer in the short term, all eyes will be on ARK in the coming weeks to see if this diversified approach will work and bring profit out of the current storm.
