- ARK Invest sold Bitcoin ETF shares and bought Coinbase stock as the market changed.
- Trump’s new tariffs on Canada, Mexico, and China caused Bitcoin to fall sharply.
- ARK Invest also invested in the stock market, showcasing its dominance in global finance.
ARK Invest, led by Cathie Wood, made some adjustments to its holdings amid a turbulent economic environment. The firm purchased 38,865 shares of Coinbase (COIN) for $8 million while selling its ARK 21Shares Bitcoin ETF (ARKB) shares worth $8.2 million. The move coincided with Bitcoin falling below $87,000 and being the only U.S. Bitcoin ETF to register net inflows on Monday, gaining $58.18 million.
ARK’s Strategic Moves and Market Reactions
On Monday, ARK Invest further adjusted its portfolio, adding 38,865 Coinbase shares to its Next Generation Internet ETF (ARKW) while reducing exposure to ARKB. This transaction aligned with ARK’s strategy of maintaining balanced asset allocations, with a general guideline of limiting any single asset’s weight to around 10%.
Coinbase shares declined 4.6% on Monday, closing at $205.75, marking a nearly 20% drop year-to-date. At press time, COIN showed a 1% decline, reflecting some volatility. Meanwhile, BlackRock’s IBIT and Grayscale’s GBTC saw outflows of $78 million and $54.4 million, respectively, contributing to a total net outflow of $74.2 million from U.S. spot Bitcoin ETFs.
Broader Market Shifts and Political Influence
ARK’s restructuring came shortly after President Donald Trump instructed the working committee to advance a U.S. Crypto Strategic Reserve. After the announcement, Bitcoin, Ethereum, XRP, Solana, and Cardano saw gains of approximately 5%, 8%, 12%, 15%, and 20%, respectively, from Friday’s lows. However, the rally was short-lived as markets reversed sharply on Monday.
President Trump confirmed on March 3 that 25% tariffs on Canada and Mexico would take effect Tuesday, along with a tariff increase on China to 20%. This caused a major retracement with Bitcoin and other cryptocurrencies erasing their gains, creating the largest CME gap recorded.
Related: ARK Invest Bets $8.7M on Coinbase, Sells $8.6M Bitcoin ETF
ARK’s Investment Expansion Beyond Crypto
Beyond cryptocurrency, ARK’s ARKF ETF made its largest dollar-value trade of the day, acquiring 74,111 shares of Airbnb Inc. (ABNB) for $10.3 million. This investment underscores ARK’s confidence in the travel sector’s recovery. Given ARK’s active portfolio management, will further asset reallocations follow if market conditions shift again?
