tl;dr
Cathie Wood's investment firm sold 225,742 shares of its ARK 21Shares Bitcoin ETF (ARKB) and 34,207 shares of Coinbase Global Inc. from its Next Generation Internet fund (ARKW). The sales may be an attempt to capitalize on market momentum while reducing exposure before the Consumer Price Index relea...
Cathie Wood's investment firm sold 225,742 shares of its ARK 21Shares Bitcoin ETF (ARKB) from its Next Generation Internet fund (ARKW) on Tuesday, alongside a sale of 34,207 shares of Coinbase Global Inc. These moves may reflect an attempt to capitalize on recent market momentum while reducing exposure ahead of the Consumer Price Index (CPI) release, according to Nansen analyst Nicolai Sondergaard.
The sales could also signal a strategic shift towards higher-risk, higher-reward assets or a preference for simpler assets with strong returns compared to their fundamentals. Bitcoin recently surged to an all-time high above $123,000 before retreating to around $119,200 at the time of publication, showing a 2.4% gain over the past 24 hours according to CoinGecko data.
Coinbase's shares also reached record highs, hitting $398.50 on Monday and topping $400 for the first time on Wednesday, pushing its market cap beyond $100 billion. This sale follows another major divestment earlier this month when the firm sold $95 million worth of COIN shares across multiple ARK ETFs as part of a rebalancing strategy amid ongoing regulatory pressures, including a significant Supreme Court decision concerning IRS access to user transaction data.
ARK's Bitcoin ETF sale marks a noteworthy adjustment for the firm, known as an aggressive institutional crypto adopter. ARKB remains the fourth-largest holding in the Next Generation Internet fund with a 7.2% allocation, worth about $157.2 million. The fund retains exposure to Bitcoin through other key holdings like Tesla and Robinhood.
While ARK's Bitcoin ETF saw net outflows of $6.2 million on Tuesday, this contrasts with the broader market where combined spot Bitcoin ETFs recorded $403.1 million in net inflows. BlackRock's IBIT led these inflows with $416.3 million, contributing to a nine-day inflow streak totaling $4.4 billion across Bitcoin ETFs.
ARK’s ongoing rebalancing aims to diversify its actively managed funds, with Coinbase standing as the second-largest holding in ARKW at a 7.9% weighting, valued around $172.8 million. Since its launch, ARK’s Bitcoin ETF has accumulated $2.9 billion in cumulative net inflows and currently manages $5 billion in assets.