ARK Invest has stacked new Coinbase shares as it dropped its Bitcoin ETF assets in the latest portfolio rebalancing effort.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Financial services giant ARK Invest has made deliberate moves in response to the ongoing volatility in the crypto market.
According to a report from The Block, the investment firm, led by Cathie Wood, acquired 41,032 shares of Coinbase Global Inc (NASDAQ: COIN), valued at $8.7 million, for its Next Generation Internet ETF (ARKW).
This will be the first time since October that Ark Invest has added Coinbase stock to its portfolio. The firm also sold 98,060 shares of its spot Bitcoin ETF, ARKB, worth $8.6 million.
ARK Invest buys the dip!
Cathie Wood’s ARK snapped up 41,032 $COIN shares ($8.7M) as crypto equities tumbled.
Meanwhile, it sold 98,060 shares of its own Bitcoin ETF (ARKB), worth $8.6M.
This comes after $940M in record outflows from U.S. spot Bitcoin ETFs. pic.twitter.com/gQYBTC0Vjp
— Satoshi Club (@esatoshiclub) February 26, 2025
Essentially, the investment management company follows a plan where no holding exceeds 10% of a fund’s total assets. It holds this policy to ensure diversification opportunities for the company.
Furthermore, according to the firm’s latest filings this February, Coinbase is currently the sixth-largest holding in ARKW. This comprised 5.5% of the fund’s total value, pegged around $94.4 million. Meanwhile, ARKB remains the leading holding in the fund, with a 10.7% weighting worth approximately $182.2 million.
However, it is important to note that Coinbase stock has seen a lot of decline due to market volatility in recent months. Unfortunately, this is in contrast to when it peaked at $343.62 in December but has since dropped about 38%.
Similarly, on Tuesday, the shares closed at $212.49, down 6.4% for the day and over 17% since the start of the year. This shows a fluctuating downtrend that the firm’s shares have been going through.
This new outlook for the firm came after Yassine Elmandjra, the driving force behind Ark Invest’s digital assets division, announced his departure. In an X post, Elmandjra shared his gratitude to Ark’s founder, Cathie Wood, and the team for their shared experience.
In related news, the crypto market has taken a big hit recently, which may have affected Ark Invest’s investment decisions. For example, Bitcoin dropped 10% in the last two days before making a small recovery. Other major cryptocurrencies like Ethereum ETH $1 894 24h volatility: 5.8% Market cap: $228.43 B Vol. 24h: $18.94 B , XRP XRP $2.20 24h volatility: 6.5% Market cap: $127.87 B Vol. 24h: $3.67 B , and Solana SOL $129.6 24h volatility: 6.8% Market cap: $66.30 B Vol. 24h: $4.00 B fell even harder, losing 18%, 19%, and 22%, respectively.
Several factors have contributed to this decline. President Donald Trump’s tariffs have created economic uncertainty, a major LIBRA token rug pull has shaken investor confidence, particularly in the meme coin market, and a recent cyberattack by the Lazarus Group on Bybit led to the theft of over $1.4 billion in Ethereum.
Bitcoin ETFs are also struggling, with investors pulling out vast amounts of money. On Monday, the assets recorded a $539 million outflow, and outflows hit a record $1 billion on Tuesday.
Despite the dip, some experts still believe Bitcoin has room to grow. Matt Mena, a strategist at 21Shares Crypto Research, says that while the recent slump raises concerns, market trends suggest Bitcoin is still in a bull run.
Despite these short-term losses, the crypto market is still up more than 50% compared to last year, showing that digital assets remain strong in the long run.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
