Cathie Wood’s Ark Invest has increased its stake in Coinbase Global Inc. despite a broader sell-off in global markets. On Monday, the investment firm purchased 84,514 shares of the crypto exchange, valued at approximately $13.3 million.
The buy was split between two of its major funds, and that is ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF). This move signals Ark’s continued belief in the long-term potential of Coinbase, even as its share price declines.
ARKW and ARKF Expand Positions
Following this move, Coinbase became the fourth-largest holding in the ARKW fund, with a 5.92% weight. In ARKF, it now stands as the second-largest holding, with a 7.65% weight.
Despite the recent drop in Coinbase’s stock, Ark continues to increase its exposure.
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Bitcoin ETF Offload and Market Reaction
While adding more Coinbase stock, ARKW simultaneously sold 159,496 shares of the ARK 21Shares Bitcoin ETF (ARKB), amounting to roughly $12.4 million. Data from SoSoValue showed that ARKB recorded over $4.6 million in net outflows on the same day.
This decision comes as Bitcoin held its ground during the latest market turmoil, showing less weakness compared to traditional tech stocks.
Still, Ark appeared to be shifting some of its weight from direct Bitcoin exposure to crypto-linked equities like Coinbase.
Rebalancing Strategy in Play
Ark’s buying and selling activity looks like part of a broader rebalancing strategy. Earlier this year, the firm also bought 38,865 Coinbase shares for ARKW, worth $8 million, while offloading $8.2 million of ARKB.
The timing suggests that Ark is responding to recent market trends and possibly preparing for future volatility. Analysts believe Ark may be positioning itself for gains in crypto-adjacent equities instead of holding too much direct Bitcoin exposure during uncertain times.
Crypto Market Moves and the “Trump Pump”
The crypto market recently experienced a short-lived rally, partly driven by political sentiment over the weekend. Known informally as the “Trump pump,” the surge in digital asset prices faded as the week began.
While Bitcoin remained relatively stable, Coinbase’s stock dropped over 12%, influenced by the broader sell-off in risk assets. Despite that, Ark used the dip as a buying opportunity to strengthen its holdings in the digital asset space.
Ark Invest’s shift from Bitcoin ETF holdings toward Coinbase shares shows a strategic change in how it approaches crypto exposure. The firm appears to be favoring platforms that serve the broader crypto ecosystem instead of just holding the assets themselves.
While markets remain shaky, Ark’s continued bet on Coinbase may signal long-term optimism about the company’s role in the digital finance space. Investors will be watching closely to see if this move pays off as the market stabilizes.
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