Ark Invest, led by Cathie Wood, is expected to continue adjusting its weightings if the stock of Coinbase, a cryptocurrency exchange, continues to rise. The company recently sold a total of $15.1 million worth of Coinbase shares across its three exchange-traded funds. The sales included 45,915 shares from the Innovation ETF (ARKK), 17,755 shares from the Next Generation Internet ETF (ARKW), and 6,946 shares from the Fintech Innovation ETF (ARKF). This comes after Ark sold $20.4 million worth of COIN on April 11th, coinciding with a surge in the stock price. However, on April 15, Ark did sell a limited quantity of Coinbase shares valued at around $824,000 from its ARKW fund.
To maintain a diversified portfolio, Ark’s investing philosophy ensures that no single asset accounts for more than 10% of an ETF’s total holdings. Therefore, if Coinbase’s stock continues to outperform other assets in the funds, Ark will likely adjust its weightings accordingly. Currently, Coinbase is ranked as the third-largest position in the ARKK ETF with a weighting of 8.2%. In the ARKW ETF, it ranks as the fourth-largest position with the same weighting, while in the ARKF ETF, it is the most heavily weighted position at 10.4%.
The market value of ARKK’s Coinbase holdings is $547 million, while ARKW’s COIN weightings amount to $129 million, and ARKF’s to $105 million. In the past year, the ARKK, ARKW, and ARKF funds have experienced significant increases of approximately 24%, 55%, and 61%, respectively.
In other cryptocurrency news, Solana is facing challenges in a bearish market, with speculations on whether SOL can reach $200.
