Originally published on: August 02, 2024
In a whirlwind day of trading, Cathie Wood’s prominent investment firm, ARK Invest, has ramped up its activity in the cryptocurrency market. The firm has been making substantial moves, including acquiring a significant stake in the 3iQ Ether staking ETF while offloading millions of dollars worth of Coinbase stock.
ARK’s Coinbase Stock Sales and Holdings
Following the resumption of substantial Coinbase stock sales that began in July, ARK escalated its selling activity in August. The firm executed a major transaction on August 1st, selling 69,069 Coinbase shares, valued at $14.7 million based on the closing price of the stock at that time.
Despite the continued shedding of Coinbase stock, ARK’s funds retain a substantial portion of Coinbase shares. As of August 2nd, Coinbase remains the top asset in the ARK Fintech Innovation ETF (ARKF), constituting nearly 10% of the portfolio.
On the heels of Coinbase’s reported $1.4 billion in total revenue for the second quarter of 2024, the market sentiment surrounding the exchange remains strong.
ARK Invest’s Entry into 3iQ Ether Staking ETF
Simultaneously, ARK Invest made its first foray into the 3iQ Ether staking ETF (ETHQ.U), a Canada-based fund focused on long-term capital growth through investments in Ether and passive rewards from staking activities.
On August 1st, ARK acquired 1.7 million shares of ETHQ.U, amounting to approximately $21 million. Notably, a significant portion of these shares, around one million, found their way into the ARK Next Generation Internet ETF (ARKW). The remaining 651,713 shares were integrated into the ARK Fintech Innovation ETF.
Riding High on 3iQ Ether Staking ETF’s Growth
The 3iQ Ether staking ETF has demonstrated impressive growth, closing at $12.3 on August 1st with a year-to-date surge of approximately 40%. The strategic acquisition positions ARK to capitalize on the fund’s continued momentum in the thriving cryptocurrency market.
ARK’s Significant Crypto Portfolio Adjustments
In addition to the Coinbase stock sales and 3iQ Ether staking ETF purchase, ARK made strategic moves to reallocate its assets. The firm divested 108,751 shares of the ARK 21Shares Bitcoin ETF (ARKB) from the ARKW fund, amounting to $6.9 million. Furthermore, ARK liquidated 282,435 shares of Robinhood, yielding $5.7 million in returns.
As ARK Invest navigates the dynamic landscape of the cryptocurrency market, its agile trading strategies reflect a keen eye for emerging opportunities and a proactive approach to portfolio management.
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