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Reported by The Block: Ark Invest bought 53,708 Coinbase shares on Wednesday, worth $8.4 million, as the investment firm rebalanced its fund weightings amid a post-U.S. presidential debate price drop across the crypto market.
It’s the first time Ark has bought or sold Coinbase shares since the early August lows.
Ark Invest bought 53,708 Coinbase shares, worth $8.4 million, across three of its exchange-traded funds on Wednesday amid a broad crypto-related market drop following the U.S. presidential debate on Tuesday night.
According to the company's latest trade filing, the Cathie Wood-led investment firm purchased 38,475 shares ($6 million) for its Innovation ETF (ARKK), 9,349 shares ($1.5 million) for its Next Generation Internet ETF (ARKW) and 5,884 shares ($925,000) for its Fintech Innovation ETF (ARKF).
It’s the first time Ark bought or sold Coinbase shares for its funds since acquiring $21.8 million worth of COIN in early August, coinciding with crypto market lows that saw the price of bitcoin briefly drop below the $55,000 level.
Ark’s investment strategy involves letting no individual holding take up more than 10% of an ETF’s portfolio. This is to maintain diversification within its funds — meaning Ark is likely to continue rebalancing its weightings if the value of Coinbase stock rises or falls significantly relative to Ark's other holdings in its funds.
According to the firm’s disclosures, COIN is now the fourth-largest holding within its ARKK ETF, with a weighting of 6.5%, worth around $355 million, as of Sept. 12. COIN is the sixth-largest holding in its ARKW fund at 5.1%, worth $67 million. Coinbase shares represent Ark’s second-largest holding in its ARKF fund at 7.3%, worth $60 million.
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