Ark Invest, led by Cathie Wood, is likely to make adjustments to its portfolio if Coinbase’s stock continues to rise. Currently, Ark ranks Coinbase as the third-largest position in its ARKK ETF. On Tuesday, Ark sold a total of $15.1 million worth of Coinbase shares across its three exchange-traded funds. This includes $9.8 million from its Innovation ETF (ARKK), $3.8 million from its Next Generation Internet ETF (ARKW), and $1.5 million from its Fintech Innovation ETF (ARKF).
After selling $20.4 million worth of Coinbase shares on April 11th, Ark has not made any substantial sales for about a month. However, on April 15th, it did sell a limited quantity of Coinbase shares valued at around $824,000 from its ARKW fund.
Ark’s investment philosophy emphasizes diversification, with no single asset accounting for more than 10% of an ETF’s total holdings. Therefore, if Coinbase’s stock continues to outperform other assets in the funds, Ark will likely adjust its weightings accordingly.
Currently, Coinbase holds the third-largest position in the ARKK ETF with a weighting of 8.2%. In the ARKW ETF, Coinbase ranks as the fourth-largest position with an 8.2% weighting. However, in the ARKF ETF, Coinbase is the most heavily weighted position with a weight of 10.4%.
The market value of ARKK’s Coinbase holdings is $547 million, while ARKW’s Coinbase weightings are valued at $129 million, and ARKF’s at $105 million. Over the past year, the ARKK, ARKW, and ARKF funds have seen increases of approximately 24%, 55%, and 61% respectively.
In other news, Solana is currently facing challenges in a bearish market, and there is speculation on whether it can reach a price of $200.
