ARK Invest, led by prominent investor Cathie Wood, has initiated a sizeable sell-off of shares in the cryptocurrency-friendly trading platform Robinhood. The firm divested 1.6 million shares from three of its funds, which valued approximately $31.5 million at Robinhood’s last closing price.
Significant Reduction in ARK’s Robinhood Holdings
The ARK Innovation ETF (ARKK) sold the majority, offloading around 1.247 million shares valued at $24 million. ARK’s Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) also participated in the sell-off, releasing 275,933 and 128,137 shares, respectively. This move marks ARK’s largest divestment from Robinhood to date and comes after a notable 36% surge in Robinhood’s share price over the past month.
ARK had previously shed Robinhood shares in smaller quantities, adhering to Rule 12d3-1, which limits funds from investing more than 5% of total assets in securities. Despite the recent sales, Robinhood stocks still account for 4.3% of ARK’s $8.2 billion in managed assets, ranking as the eighth-largest holding.
ARK Invest Rebalances Portfolio
In a strategic portfolio rebalance, ARK is simultaneously increasing its stake in the online gaming company Roblox (RBLX), purchasing 740,115 shares across its funds, valued at $27 million. Furthermore, ARK has also reduced its Coinbase holdings, selling 4,291 shares for a valuation of about $21 million.
ARK’s move aligns with its continuous portfolio adjustments in response to market conditions. Robinhood, established in 2013, is known for enabling users to trade a variety of financial instruments, including cryptocurrencies such as Bitcoin and Ethereum. The company recently expanded its services with the launch of its Robinhood Wallet app for Android users.