- Ark Invest purchased 41,032 Coinbase shares while selling $8.6M of its Bitcoin ETF.
- Coinbase shares rank as Ark’s 6th-largest holding, making up 5.5% of the ARKW portfolio.
- Bitcoin ETF saw $2.7B in net inflows since January 2024, totaling $4.7B in assets.
ARK Invest’s activity in the cryptocurrency market experienced significant developments. On Tuesday, ARK Invest added 41,032 Coinbase shares, worth $8.7 million, to its Next Generation Internet ETF (ARKW). At the same time, as the crypto market is declining, it has managed to sell $8.6 million of its own spot Bitcoin ETF (ARKB).
Ark’s Notable Coinbase Investment
This is the first time ARK has purchased Coinbase shares since October 8, 2024. At that time, the firm purchased $2.2 million worth of COIN shares before Donald Trump’s election, an event widely believed to have positively impacted the crypto market. Coinbase’s stock peaked at $343.62 in December, while Bitcoin surged by 76% from $62,000 to over $109,000.
Nonetheless, both Coinbase’s stock and Bitcoin have experienced notable declines recently. Coinbase shares have dropped by 6.42%, while Bitcoin has declined by approximately 1.02% in the last 24 hours. These declines were exacerbated by a broader crypto market selloff.
ARKB (ARK 21SHARES BITCOIN ETF), launched in early 2024, has shown strong performance with increasing investor interest. It has attracted $2.7 billion in net inflows, bringing its total assets to $4.7 billion.
Coinbase’s Key Role in ARKW
ARK Invest’s diversification policy limits direct investments to no more than 10% of any given fund. This strategy may explain ARK’s decision to invest in Coinbase while adjusting its positions elsewhere. At press time, Coinbase holds the sixth-largest position in the ARKW fund, with 5.5% of the total value of $94.4 million.
Related: Coinbase’s Staked Ethereum Share Hits 21%, Raises Concerns
On Tuesday, ARK sold 98,060 shares of its spot Bitcoin ETF, ARKB, for $8.6 million. This follows a previous sale in September 2024, when ARK sold 44,609 shares for $2.8 million. With Bitcoin and Coinbase underperforming, the coming weeks will be crucial in assessing whether ARK’s investments can recover.
