Ark Invest Buys $9.4M in eToro Shares, Sells $7.9M in Bitcoin ETF

Ark Invest, a prominent investment management firm, made significant moves in its portfolio on Wednesday, purchasing $9.4 million in eToro shares and selling $7.9 million in its Bitcoin ETF holdings. The firm acquired 140,000 eToro shares, valued at $9.4 million, for its fintech-focused ETF (ARKF) as the company made its Nasdaq debut under the ticker ETOR. eToro's stock price surged by 29% on its debut, closing at $67 per share.

In a concurrent move, Ark Invest sold $7.9 million worth of shares from its spot Bitcoin ETF (ARKB) across both its ARKF and ARKW funds. Despite this sale, ARKB remains a substantial holding in both funds, constituting 9.5% of ARKW's total value, approximately $165 million, and 6.1% of ARKF's value, around $62 million. This strategic adjustment indicates Ark's ongoing commitment to maintaining a balanced and diversified portfolio.

Ark Invest's investment strategy is characterized by its proactive approach to new listings. The firm previously acquired 750,000 Coinbase shares when the company went public in April 2021. Ark's policy restricts any single investment to no more than 10% of a fund's total value, ensuring a diversified portfolio. The firm's cautious optimism about eToro's growth potential is evident in its initial stake, which represents 0.93% of ARKW's total value. Shopify and Coinbase are the top holdings in ARKW, making up 9.9% and 9.7% of the fund, respectively.

The Ark Bitcoin ETF (ARKB) has seen consistent inflows, with net inflows of $5.2 million on Wednesday alone. Since February 12, 2024, ARKB has gathered over $2.7 billion in inflows, bringing its total assets under management to $4.9 billion. This substantial inflow underscores the growing interest in Bitcoin and the firm's strategic positioning in the cryptocurrency market.

In addition to its investments in eToro and Bitcoin, Ark Invest has also diversified its crypto holdings by investing $7.6 million in 3IQ’s Solana staking ETF. This brings Ark's total investment in Solana to $20.9 million, reflecting the firm's strategy to diversify its crypto investments even in volatile market conditions. This move aligns with Ark's broader approach to maintaining a balanced and diversified portfolio, ensuring resilience and growth potential across various sectors and asset classes.