Ark Invest purchased 41,032 shares of Coinbase (COIN) worth approximately $8.7 million for its Next Generation Internet ETF (ARKW) on Tuesday, while simultaneously selling $8.6 million of its own spot Bitcoin ETF (ARKB) amid a broad cryptocurrency market downturn.
This marks Ark’s first acquisition of Coinbase shares since October 8, 2024, when it bought $2.2 million worth of COIN ahead of former President Donald Trump’s pro-crypto election victory.
Following that purchase, Coinbase stock doubled, reaching an all-time high of $343.62 in December, while Bitcoin surged 76% from around $62,000 to over $109,000 by Inauguration Day.
Coinbase Drops 38% and Bitcoin Falls 19% Amid Latest Crypto Market Sell-Off
Both Coinbase shares and Bitcoin have faced sharp declines.
Coinbase shares have dropped approximately 38% from their peak, while Bitcoin has fallen 19%, worsened by the latest sell-off in the crypto market.
On Tuesday, Coinbase closed down 6.4% at $212.49, leaving it down 17% year-to-date.
However, COIN showed signs of recovery with a 2% gain in pre-market trading on Wednesday, according to TradingView data.
Ark’s investment strategy mandates that no single holding exceed 10% of any fund’s portfolio, ensuring diversification.
If Coinbase stock continues to fluctuate, Ark may further rebalance its holdings.
As of February 25, COIN represented 5.5% of the ARKW fund, valued at roughly $94.4 million. Coinbase’s market capitalization currently stands at $39.5 billion.
While increasing exposure to Coinbase, Ark offloaded 98,060 shares of its ARKB ETF from the same fund—its first significant ARKB sale since September 2023, when it sold 44,609 shares worth $2.8 million.
Despite the recent sale, ARKB remains ARKW’s largest holding with a 10.7% weighting, valued at approximately $182.2 million.
Other top positions in the fund include Tesla, Roku, Roblox, and Robinhood.
Since launching in January 2024, Ark’s spot Bitcoin ETF has attracted $2.7 billion in net inflows, bringing its assets under management (AUM) to $4.7 billion.
Bitcoin Drops 10% in Two Days as U.S. Spot ETFs See $1B in Record Outflows
The asset reallocation comes amid significant market volatility.
Bitcoin plummeted 10% over the past two days before stabilizing slightly. U.S. spot Bitcoin ETFs witnessed heavy outflows, with $539 million exiting on Monday and a record $1 billion on Tuesday.
Altcoins fared worse: Ether (ETH) dropped 18%, XRP fell 19%, and Solana (SOL) lost 22% before finding some support.
These declines have been attributed to uncertainty over President Trump’s tariff policies, the aftermath of Bybit’s $1.5 billion hack, and the recent unwind of the memecoin surge.
The post Ark Invest Buys $8.7M in Coinbase Shares, Sells $8.6M of Its Bitcoin ETF Amid Crypto Sell-Off appeared first on Cryptonews.
