Ark Invest, led by Cathie Wood, made fresh moves in the crypto market on Monday. The firm purchased 38,865 Coinbase shares worth $8 million for its Next Generation Internet exchange-traded fund (ARKW).
At the same time, it offloaded $8.2 million worth of its own spot Bitcoin ETF (ARKB). This rebalancing comes as the crypto market retraces gains from the so-called “Trump pump” over the weekend.
A Shift in Ark’s Holdings
The latest adjustment follows a pattern Ark has been maintaining for months. Just last week, the firm acquired $8.7 million worth of Coinbase shares for the first time since October.
Simultaneously, it sold $8.6 million worth of ARKB for the first time since September.
Ark’s strategy involves keeping no single holding above 10% of a fund’s portfolio.
This diversification approach helps minimize risk and maintain stability within its investment funds. If any stock’s value fluctuates significantly, Ark tends to rebalance accordingly.
Also Read: Coinbase’s Brian Armstrong Cheers After SEC Decides Dismissal of Uniswap Probe
Coinbase’s Role in Ark’s Portfolio
As of March 3, Coinbase stock is Ark’s sixth-largest holding in the ARKW fund. The firm’s disclosures show COIN makes up 6% of the fund, amounting to around $99.1 million.
If the stock continues to rise, Ark may need to sell off more shares to maintain its balance.Â
According to him, COIN recently broke out of a symmetrical triangle pattern, indicating a potential 34% price pull. He predicts the stock could soon reach $177, reaffirming his earlier forecast.
Cathie Wood’s Optimism on Bitcoin and Trump
Cathie Wood has been vocal about her belief in Bitcoin’s long-term potential. She has consistently maintained a bullish outlook on the leading cryptocurrency despite market fluctuations.
Additionally, Wood has expressed her views on the upcoming U.S. presidential election. She believes a Donald Trump victory could trigger a surge in mergers and acquisitions among private companies. If Trump wins, she expects the regulatory environment to become more favorable for financial markets, including crypto-related investments.
Crypto Market Faces Uncertainty
Ark’s latest trades come at a time when the crypto market is experiencing volatility. Over the weekend, Bitcoin and other digital assets saw a brief rally following Trump’s announcement of a strategic crypto reserve for the U.S. However, the gains quickly disappeared amid fresh concerns over tariffs and economic policies.
Despite market turbulence, Ark Invest continues to adjust its portfolio, betting on the long-term success of companies like Coinbase while reducing its Bitcoin ETF exposure.
Also Read: Coinbase Wins as SEC Dismisses Crypto Exchange Lawsuit: Details Below