Investment management giant, ARK Invest, known for its exceptional strategizing, has been ballooning its Meta and Robinhood shares, while simultaneously curbing the amount of Coinbase stocks incorporated in its portfolio. This move appears tactical, as Coinbase’s stock prices hit a record-breaking 52-week high.
ARK’s adventurous decision to sell away an impressive 478,356 Coinbase shares, valued around $53 million, seems audacious, especially given Coinbase’s strong performance. However, considering ARK’s other moves, such as divesting its ARK Innovation ETF of 263,247 Coinbase stocks and ARK Fintech Innovation ETF detaching 35,666 shares, it is clear that there is an underlying strategy at work.
ARK’s involvement with Coinbase isn’t novel, with the firm aggressively acquiring Coinbase stocks after the collapse of FXT, once the third-largest cryptocurrency exchange. However, the recent reduction in Coinbase stock, echoed by the selling of shares worth $12 and $13.5 million, demonstrates a shifting focus towards Meta and Robinhood.
Contrastingly, ARK has been actively stocking up on Meta shares since the latter’s announcement of their social media app Threads. Robinhood shares have also seen a generous increase, with 111,843 shares incorporated into the ARK Fintech Innovation ETF.
This trend doesn’t seem to be temporary, either. Last month, the management firm secured around 560,000 Robinhood stocks, valued around $5.3 million. The rationale behind these actions lies in Meta’s performance, having scaled about 157% this year and becoming the second-best performer among S&P 500 companies.
Parallelly, Coinbase’s stock rally isn’t over yet, taking a favorable turn due to recent happenings. As Coinbase was listed as a surveillance-sharing partner for several spot Bitcoin ETF applicants, the value climbed due to a significant influx of positive news.
Moreover, the crypto industry celebrated a victory against the SEC, as a US court ruled in favor of Ripple in an ongoing lawsuit. This ruling, clarifying that selling XRP on exchanges does not constitute an investment contract, pushed COIN’s value up by nearly 25%, bringing the total gain to 201% since January.
ARK’s pivot, while unexpected for some, demonstrates the shifting patterns within the market and the future potential perceived in Meta and Robinhood. As the crypto-world continues to gain momentum, the unfolding strategies and investments of companies like ARK Invest will be crucial to follow in anticipating future market trends.
Source: Cryptonews
