Ark Invest Sells $6.9 Million of Its Own Spot Bitcoin ETF, Expands Coinbase Share Sale

Ark Invest sold 108,751 shares of ARKB stock. Bitcoin Bitcoin

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On Thursday, the Next Generation Internet ETF (ARKW) issued a $6.9 million exchange-traded fund (ETF).

ARKB, issued by Ark and 21Shares, saw a combined net outflow of $22.4 million on August 1, while the spot Bitcoin ETFs saw a combined net inflow of $50.6 million.

The investment firm led by Cathy Wood also increased its Coinbase stock sales yesterday, selling 31,517 shares ($6.7 million) of ARKW and 37,552 shares ($8 million) of the Fintech Innovation ETF (ARKF), after selling $2.7 million worth of COIN on Wednesday, according to the firm’s latest trading filing.

Ark’s investment strategy is to ensure that no single holding makes up more than 10% of the ETF’s portfolio. This is to maintain diversification within the fund, and means that if ARKB and COIN increase in value relative to Ark’s other holdings within the fund, the asset weightings will likely continue to be rebalanced.

According to the company’s disclosures, ARKB is the largest holding in the ARKW ETF, with a 10.6% weighting as of August 2, worth $142.4 million. COIN is the fund’s fourth-largest holding at 6.7%, worth $90.4 million. Coinbase stock is Ark’s largest holding in the ArkF fund, with a 9.7% weighting, worth $77.4 million.

According to TradingView, ARKB was trading at $63.20 at the close of trading on Thursday, down 3% on the day but up 26.4% since the start of the year. According to The Block’s Bitcoin Price Page, Bitcoin has been trading sideways for the past 24 hours and is currently trading at $64,439.

ARKB/USD price chart. Image: TradingView.

Coinbase shares were down more than 5% yesterday at $212.64, according to TradingView. The stock is up 22.9% since the beginning of the year, but remains 38% below its previous high of $342.98, set in November 2021.

Coinbase reported second-quarter revenue of $1.45 billion on Thursday, down 11% from the first quarter, partly due to a decline in consumer transactions amid the cryptocurrency market correction.

COIN/USD price chart. Image: TradingView.

According to The Block’s data dashboard, Coinbase is currently valued at $41.7 billion.

Ark also sold 282,435 Robinhood shares in its Innovation ETF (ARKK) on Thursday, worth $5.7 million.

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