Cathie Wood's ARK Invest Trims Coinbase Holdings Significantly Amid Price Surge, Most Substantial Sale Since July

In the past few weeks, ARK has consistently reduced its exposure to Coinbase stock, with Friday's transaction standing out as its most significant sale since July when it divested 480,000 shares valued at $50.5 million.

Cathie Wood's ARK Invest made its most substantial sale since July, selling 335,860 shares of cryptocurrency exchange Coinbase (COIN) on Friday. This sale, spanning three exchange-traded funds (ETFs), notably impacted the Innovation ETF (ARKK) and would have yielded $49.2 million based on Coinbase's closing price.

Headquartered in St. Petersburg, FL, the investment manager has strategically decreased its Coinbase exposure as the exchange's shares have surged amid the broader Bitcoin rally. This recent divestment aligns with a trend, with the most significant sale occurring in July, involving 480,000 shares valued at $50.5 million.

ARK employs a target weighting strategy for its ETFs, maintaining individual composite holdings within a 2% to 10% range of the fund's total value. The recent upswing in COIN stock, reaching levels not seen since April 2022, has consistently pushed its weight in the three ETFs beyond the 10% threshold.

Despite these sales, COIN still constitutes over 11% of ARKK and the Next Generation ETF (ARKW), as well as more than 13% of the Fintech Innovation ETF (ARKF). COIN closed at $146.62 on Friday, reflecting a 7.66% increase for the day.

In addition to the Coinbase sale, ARK also offloaded 102,672 shares in the Grayscale Bitcoin Trust (GBTC), amounting to approximately $3.6 million. GBTC represents 8.33% of ARKW's portfolio.

Read More: Bitcoin's Soaring Surge: A Dance with ETFs and the Symphony of Tumbling Interest Rates