Ark Invest Dumps $3.9 Million Worth Of Coinbase Shares

Ark Invest Dumps $3.9 Million In Coinbase Shares Amid 10% Price Drop And Fed Rate Cut Caution

Updated: 19 December 2024

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Ark Invest dumped Coinbase (COIN) shares worth about $3.9 million from its Fintech Innovation exchange-traded fund (ARKF) on Dec. 18 amid a 10% drop in the exchange’s share price and after Chair Jerome Powell surprised markets when he said the Fed will have a cautious stance on rate cuts going forward.

The sale by ARK Invest marks one of the biggest by the investment firm since it sold $2.8 million worth of COIN on Sept. 23.

COIN Is ARKF’s Second-Largest Holding

Recent disclosures by the Cathie Wood-led investment firm shows that COIN is ARKF’s biggest holding, with the fund’s COIN weighting standing at 9.9% as of Dec. 18. Meanwhile, its biggest holding is in Shopify.

Cathie Wood and Ark Invest’s trade activity from 12/18 pic.twitter.com/mOgWS9zzPp

— Ark Invest Daily (@ArkkDaily) December 19, 2024

Part of ARK Invest’s strategy is to not have more than 10% of a portfolio exposed to a single stock in order to maintain diversification. While the recent sale could just be a rebalancing of ARKF’s weightings, the move comes shortly after Powell announced a 0.25% interest rate cut.

Interest rate cuts are usually positive for risky assets classes such as crypto, but yesterday’s cut came with bearish remarks from Powell that surprised markets.

The Federal Reserve chair said the central bank will maintain a cautious stance on future rate cuts and added that there will probably be only 2 next year. This caused crypto prices and crypto stocks to plummet.

COIN itself plunged more than 10%, according to Google Finance data.

Ark Invest ARKF ETF Up More Than 53% Year-To-Date

ARKF is currently up more than 53% over the past year, according to the fund’s official page. Since its inception, the fund has gained over 7%.

Other notable holdings in ARKF include a 6.14% weighting in Block Inc, a 5.21% weighting towards Robinhood as well as 4.52% and 3.57% allocations to SoFi Technologies and Roblox Corp., respectively.