Ark Invest's $16M Crypto Flip: Coinbase Stock Up, Bitcoin ETF Down

Ark Invest, the investment firm led by Cathie Wood, made a significant move in the cryptocurrency market on Monday. The company purchased $8 million worth of Coinbase stock, amounting to 38,865 shares, while simultaneously selling $8.2 million of its own Bitcoin ETF (ARKB). This transaction comes amidst a period of volatility in the crypto market, following the weekend's "Trump-driven crypto reserve frenzy" and renewed concerns about tariffs.

This is not the first time Ark Invest has adjusted its holdings in the crypto market. Just a week prior, the firm had rebalanced its assets by purchasing $8.7 million worth of COIN stock, its first such purchase since October 2021. This was followed by the sale of $8.6 million worth of ARKB stock, the first such sale since September 2021.

Ark Invest's investment strategy is designed to maintain diversification within its fund, ensuring that no single holding exceeds 10% of the portfolio. This approach allows the firm to adjust its positions in response to significant price movements in individual holdings, such as Coinbase's stock.

As of March 3, 2023, Coinbase (COIN) is the sixth largest holding in Ark's ARKW fund, representing 6% of the portfolio with a value of approximately $99.1 million. According to The Block's dashboard data, Coinbase is currently valued at around $38.3 billion.