Ark Invest, the investment firm led by Cathie Wood, made significant moves in its portfolio, implementing strategic adjustments in its investments. In a pattern of continuous selling, The firm liquidated more Coinbase shares, parting ways with an additional 148,885 shares amid the December selling spree. The sale of these Coinbase shares amounts to approximately $27.58 million.
This divestment move comes after selling over $200 million in Coinbase shares over the last month. The decision to sell appears to be part of a portfolio rebalancing strategy by Wood’s company, as Coinbase shares experienced a 54.6% increase in the last month, pushing its valuation to around $32 billion.
Today ARK sold its entire remaining $GBTC position (it was ARKW's biggest holding only a month ago) and used half the money $100m-ish to buy $BITO, likely as liq transition tool to keep beta to btc while it legs into $ARKW or $ARKB. End of an era. h/t @DilksJay @funwithnumberz pic.twitter.com/J1i92qcmzo
— Eric Balchunas (@EricBalchunas) December 28, 2023
Simultaneously, the company took a substantial position in the ProShares Bitcoin Strategy ETF (BITO), investing $92 million in this ETF product linked to Bitcoin futures. This move represents a tactical adjustment in Ark Invest’s exposure to cryptocurrencies, suggesting a strategic focus on participating in the futures market.
Ark Invest Made Multiple Adjustments to its Portfolio Ahead of the Next Year
The ARK Next Generation Internet ETF (ARKW) was the vehicle through which these transactions were executed, demonstrating the flexibility and agility of Cathie Wood’s company to adjust portfolio weights according to market dynamics.
In addition to transactions related to Coinbase, The firm also sold shares of Block Inc., owned by Jack Dorsey, worth $18.4 million. Block Inc. is known for being the company behind Square and Twitter, and the sale of shares in this company adds to the adjustments in its portfolio.
Another interesting move carried out by the company was the liquidation of its remaining position in Grayscale Bitcoin Trust (GBTC), an investment vehicle tracking the price of Bitcoin. The funds obtained from the sale of GBTC, approximately $100 million, were strategically reallocated, with half of the sum used to acquire shares of the ProShares Bitcoin Strategy ETF (BITO).
This series of moves highlights the company’s active approach to portfolio management, adapting to changing market conditions and optimizing its investments to achieve long-term strategic goals.