TL;DR
- Ark Invest bought 41,032 Coinbase shares for $8.7 million and sold $8.6 million of its Bitcoin ETF to balance its portfolio.
- Bitcoin dropped 10% in two days, while altcoins experienced even greater losses before stabilizing.
- Despite the volatility, the crypto market has grown 50% over the past year, indicating a possible bullish trend.
Ark Invest adjusted its portfolio amid a sharp correction in the crypto market. The firm acquired 41,032 Coinbase shares for a total of $8.7 million while selling 98,060 shares of its own Bitcoin ETF for $8.6 million. This move aims to maintain balance within its funds, ensuring no single investment exceeds 10% of the total portfolio.
Coinbase has declined 38% since its all-time high in December, while Bitcoin has dropped around 19% over the same period. Despite this, the exchange remains one of the top holdings in the Next Generation Internet fund (ARKW), with a 5.5% allocation valued at approximately $94.4 million. Its Bitcoin ETF, ARKB, continues to be the fund’s most significant asset, with a 10.7% weighting and $4.7 billion in assets under management.
Ark Adjusts in a Highly Volatile Market
Ark’s portfolio shift comes as the crypto sector faces a broad downturn. Bitcoin lost 10% of its value in just two days, while U.S. Bitcoin ETFs saw capital outflows exceeding $1.5 billion during the same period. Altcoins suffered even sharper declines, with Ethereum down 18%, XRP 19%, and Solana 22% before finding support.
Bullish Phase Ahead?
Several factors have added pressure to the markets, including uncertainty surrounding U.S. trade policies, the impact of the recent $1.5 billion hack on Bybit, and the mass sell-off following the latest memecoin frenzy. Despite this environment, some analysts believe the market remains in a long-term bullish phase, supported by on-chain activity indicators and macroeconomic factors.
The GMCI 30 index, which tracks the performance of the top cryptocurrencies, dropped 15% over two days before showing signs of recovery. While current conditions remain volatile, the crypto market has grown 50% over the past year, suggesting a positive long-term trend
