ARK Invest’s Cathie Wood Makes Strategic Moves in Crypto and Stock Markets
In recent developments in the investment sphere, Cathie Wood's ARK Invest made a significant move by divesting $5.3 million worth of Coinbase (COIN) shares.
This decision coincided with a surge in COIN’s value following legal actions against Binance in the US. On a trading day, ARK Invest sold nearly 44,000 shares from its ARK Fintech Innovation ETF, a move that seems disconnected from any apparent shift in Wood’s positive stance on Bitcoin (BTC).
This instance marks the third time this year that Cathie Wood has offloaded Coinbase shares, opting instead to invest $1.2 million in Robinhood shares. Similar transactions occurred earlier this year, including sales of $103 million in July and 65,376 shares in October from her funds.
Experts analyzing these movements indicate that these sales may not necessarily reflect a lack of trust in Bitcoin from Wood’s perspective. It’s probable that ARK Invest adjusted the weightings of Coinbase stocks in its ETFs. Previous sales of Grayscale Bitcoin Trust (GBTC) also followed a substantial increase in share price, suggesting a deliberate effort to balance the weightings within Wood’s ETF portfolios.
READ MORE: Bitcoin: Possibility of Surging Past $500K – PlanB’s Forecast
Some analysts suggest that examining ARK’s history of weightings is crucial before drawing conclusions from these actions, as ARK might need to sell shares to maintain a certain weighting percentage, typically around 9%.
Wood’s interest in Robinhood shares might indicate her confidence in the potential of the stock and crypto brokerage, despite reported declines in crypto trading revenues this year due to the delisting of specific cryptocurrencies. Robinhood’s plan to expand its app to Europe, mentioned by CEO Vlad Tenev in an earnings report, could potentially boost its share price, leading to favorable outcomes for Wood.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
