ARK ETF Rebalances with a $20.6M Sale of Coinbase Shares

• ARK Invest Trims Coinbase (COIN) Position by $20.6 Million
• Exploring ARK's Investment Strategy
• ARK's Largest COIN Holdings
• Other ARK ETFs Holding COIN
• Upcoming Regulatory Challenges

ARK Invest Trims Coinbase (COIN) Position by $20.6 Million

ARK Invest reduced its holdings in Coinbase (COIN) by $20.6 million last Friday, selling across three of its exchange-traded funds (ETFs). The transactions involved a total of 133,823 COIN shares which ended last week at a price of $153.98 per share.

Exploring ARK's Investment Strategy

ARK Invest operates with a strategic target that no single stock should exceed 10% of an ETF's value. This strategy has led to the consistent selling of COIN shares, particularly in the last three months of 2023, a period during which COIN's price more than doubled.

ARK's Largest COIN Holdings

The greatest concentration of Coinbase stock within ARK's portfolio is in the Innovation ETF (ARKK), which holds more than $850 million worth of COIN. The recent sale has reduced ARKK's Coinbase weighting to 10.04%, indicating that ARKK's sales of COIN could be nearing a halt, barring any significant increase in Coinbase's share price.

Other ARK ETFs Holding COIN

The ARK Next Generation Internet (ARKW) and Fintech Innovation (ARKF) ETFs also hold Coinbase stocks, albeit in smaller quantities. Nevertheless, their weightings are still comparatively higher, with ARKW and ARKF having Coinbase weightings of 10.37% and 13.41%, respectively.

Upcoming Regulatory Challenges

The U.S. Securities and Exchange Commission (SEC) is reportedly looking to leverage its recent victory over Terraform in disputes with both Coinbase and Binance.

Edited by Jonathan Stoker