The latest offloading of Coinbase shares comes amid the part of Ark’s portfolio rebalancing. Coinbase still remains the third-largest holding for the company.
On Tuesday, May 7, Cathie Wood’s Ark Investment Management divested more than $15 million worth of Coinbase Global Inc (NASDAQ: COIN) stock totaling to 70,616. This offloading has happened across different ETF funds operated by Ark Investments.
According to the latest trade filing, the investment firm led by Cathie Wood divested 45,915 shares valued at $9.8 million from its Innovation ETF (ARKK), 17,755 shares worth $3.8 million from its Next Generation Internet ETF (ARKW), and 6,946 shares amounting to $1.5 million from its Fintech Innovation ETF (ARKF).
This is the first time in nearly a month that Ark sold a significant amount of its Coinbase stock holdings. Last month on April 11, the company had offloaded $20.4 million worth of COIN stock. Later, on April 15, the ARKW fund sold a small amount of Coinbase shares worth less than $1 million.
The Coinbase (COIN) share has been one of the top-performing stocks on Wall Street throughout 2024, and even during the first quarter of 2024. Since the beginning of 2024, the COIN stock price has already rallied by 36%. Ark Invest has been periodically divesting its Coinbase holdings at every rise. As of Tuesday’s closing, the Coinbase stock is trading at $214 with a market cap of $52.63 billion.
Ark Invest Rebalances Portfolio
As per the investment strategy of Ark, the company seeks to bring no single stock exposure of more than 10% in the ETF portfolio. This way Ark Invest ensures maintaining good diversification in its portfolio. thus, Ark Invest stated that it would continue the rebalancing and divesting if the weightage of Coinbase, in comparison to other investments, increases beyond the threshold.
ARKK’s holdings in Coinbase have a market value of $547 million. Meanwhile, ARKW’s COIN weightings stand at approximately $129 million at current prices, and ARKF’s holdings are valued at around $105 million. Overall, the ARKK, ARKW, and ARKF funds have seen impressive gains over the past year, with returns of approximately 24%, 55%, and 61%, respectively.
In its most recent disclosures, the firm revealed that Coinbase has become the third-largest holding within its ARKK ETF, accounting for 8.2% of the portfolio’s weight. This places Coinbase behind Tesla and Roku, which have a weightage of 11.2% and 8.4% respectively.
In the ARKW ETF, Coinbase is the fourth-largest holding with an 8.2% weight, trailing behind Ark’s own spot Bitcoin ETF (ARKB) at 10.2%, as well as Tesla and Roku at 8.5% and 8.3% respectively. Notably, Coinbase currently holds the top position within its ARKF ETF, representing 10.4% of the fund’s weight.
