Ark Invest, owned by Cathie Wood, has made significant portfolio changes this week. It sold $7.9 million of its spot Bitcoin ETF (ARKB) and bought $9.4 million worth of eToro shares at the trading platform’s Nasdaq debut.
Shares of eToro jumped 29% on the first day of trade, finishing at $67, well above the $52 IPO price.
This impressive launch shows that investors have faith in eToro’s business plan and future growth.
Ark Invest Adds eToro to ARKF in Fintech Expansion Move
The inclusion of eToro shares in Ark Invest’s Fintech Innovation ETF (ARKF) complemented the company’s strategy of investing in innovative financial technology firms.
As part of a regular portfolio rebalance, Ark Invest sold $7.9 million of its ARK 21Shares Bitcoin ETF (ARKB) at the same time.
ARKB is still a sizable holding in Ark’s funds despite the transaction, demonstrating the company’s ongoing faith in Bitcoin’s long-term prospects.
The move demonstrate Ark Invest’s flexible approach to portfolio management, which strikes a balance between holdings in well-known assets like Bitcoin and new prospects in the fintech industry.
Also Read: Cathie Wood’s Ark Invest Acquires 84K Coinbase Shares For $13.3M Amid Market Slump
eTORO NASDAQ Debut
On its first day of trading as a publicly traded company, eToro jumped 29%, closing at $67 under the ticker ETOR.
Due to market turmoil caused by former President Trump’s tariff-related policy changes, eToro first filed for a public offering in March but postponed preparations.
In light of the overall market rebound, the successful launch signifies a resurgence of trust in fintech and crypto-related businesses.
The launch of eToro coincides with the preparation of a number of other cryptocurrency-focused businesses, such as Circle and Animoca Brands, for their own initial public offerings later this year.
Ark Invest Bets $9.4M on eToro, Echoing Coinbase Playbook
Cathie Wood’s Ark Invest is known for its aggressive moves into newly listed tech stocks. The firm has a track record of such bets, including buying 750,000 Coinbase shares during its April 2021 debut.
Additionally, Ark Invest sold $7.9 million worth of its own U.S. spot Bitcoin ETF (ARKB) from two of its funds, Fintech Innovation (ARKF) and Next Generation Internet (ARKW), in addition to its $9.4 million investment in eToro.
Even after the sale, ARKB, which has a 9.5% portfolio weighting of around $165 million, is still Ark’s largest investment in the ARKW fund.
Also, with 6.1% of the portfolio, or roughly $62 million, it remains the fourth-largest investment in the ARKF fund. Since Ark keeps sizable holdings in ARKB across both funds, indicating ongoing long-term confidence in the cryptocurrency space, the move seems to be part of regular portfolio rebalancing rather than a move away from Bitcoin exposure.
Also Read: Cathie Wood Uplifts Bitcoin Over Gold, Hails New SEC Head Atkins As Key To Crypto’s Future