In response to the recent surge in the stock prices of Coinbase and Robinhood, ARK, under the leadership of Cathie Wood, has implemented strategic selling actions to rebalance its portfolios. ARK took a decisive step by selling 34,261 shares of Coinbase (COIN), totaling $5.5 million in value, across its Innovation ETF and Next Generation Internet ETF.
This strategic move comes at a time when Coinbase's stock has reached new yearly highs, reaching $161.16. This signifies a noteworthy 5% increase in a single day, an impressive 66% surge over the past month, and an outstanding 342% year-to-date growth. Despite these remarkable gains, the stock is still trading approximately 53% below its all-time high recorded in November 2021.
ARK's decision to sell Coinbase shares aligns with its ongoing commitment to rebalance fund weightings. In the preceding week, ARK had already divested $59 million worth of Coinbase shares. Concurrently, the firm also liquidated 121,100 shares of Robinhood, amounting to $1.6 million, from its Fintech Innovation ETF.
This latest move from ARK follows its recent investment of $3.3 million in Robinhood (HOOD), anticipating the launch of Robinhood's crypto trading app in Europe. Despite Robinhood's stock closing at $13.17, reflecting a substantial 10% daily increase and notable growth over the past month and year, it is still down by approximately 76% from its peak in August 2021. ARK's strategic maneuvers in the dynamic landscape of cryptocurrency and fintech reflect its adaptability to market trends and commitment to optimizing portfolio performance.
