Ark Invest Expands Holdings With $15.4M Robinhood Purchase And Bitcoin ETF

TLDR

• Ark Invest buys $15.4M worth of Robinhood shares amid stock drop.
• Robinhood is the 7th largest holding in Ark’s ARKK and ARKW ETFs.
• Ark Invest adds more shares of its Bitcoin ETF ARKB, worth $417K.
• Despite net outflows, Ark boosts ARKB position, focusing on rebalancing.

Cathie Wood’s Ark Invest has made notable investments in Robinhood (HOOD) and its own Bitcoin ETF, ARKB, despite market volatility. On Thursday, Ark acquired 124,427 shares of Robinhood, valued at around $15.4 million, across its Ark Innovation ETF (ARKK) and Ark Next Generation Internet ETF (ARKW). This purchase follows a 9.1% decline in Robinhood’s stock price, reflecting Ark’s continued portfolio rebalancing strategy.

Ark Invest’s Recent Investment in Robinhood

Ark Invest’s latest move to acquire Robinhood shares comes as part of its ongoing strategy to adjust its holdings. The firm bought 96,048 shares of Robinhood, worth approximately $11.9 million, for its Ark Innovation ETF (ARKK). Additionally, it purchased 28,379 shares for the Ark Next Generation Internet ETF (ARKW), valued at about $3.5 million.

The timing of the purchase is significant. Robinhood’s stock price dropped by 9.1% on the same day Ark made its purchase. Ark has been actively managing its ETF portfolios, ensuring that no single holding exceeds 10% of the fund’s total value. As of December 12, Robinhood is the seventh-largest holding in both ARKK and ARKW. Within ARKK, it represents 4.4% of the fund, worth $351.6 million. In ARKW, Robinhood holds 4.7%, equating to about $106.9 million.

Ark Invest’s Bitcoin ETF Acquisition

In addition to Robinhood, Ark Invest also increased its holdings in its own Bitcoin ETF, ARKB. The firm purchased 13,700 shares of ARKB, valued at approximately $417,000, for its Ark Next Generation Internet and Ark Fintech Innovation funds.

This move comes despite net outflows from ARKB. On December 11, ARKB saw $16.4 million in net outflows, as Bitcoin’s price fluctuated after the Federal Open Market Committee (FOMC) meeting.

Despite the outflows, Ark remains committed to strengthening its position in Bitcoin. The purchase reflects a broader trend of Ark Invest reshaping its portfolio amid market conditions. Bitcoin’s price stood at around $92,522 on December 12, up 2.5% over the previous 24 hours. This highlights Ark’s confidence in the long-term prospects of both its Bitcoin ETF and the broader cryptocurrency market.

Ark Invest’s Strategy of Portfolio Rebalancing

Ark Invest has maintained a strategy of rebalancing its portfolio by ensuring no single holding makes up more than 10% of any fund’s total value. This approach helps maintain diversification and mitigate risk in volatile market conditions.

In recent weeks, Ark has made other strategic purchases, including acquiring $7.5 million worth of Coinbase shares for ARKK on December 2. This follows a pattern of buying shares in companies with long-term growth potential.

The decision to buy more Robinhood and ARKB shares reflects Ark’s belief in these assets, even in uncertain market conditions. This strategic shift also shows Ark’s commitment to adjusting its holdings based on market movements, ensuring that it can capitalize on potential opportunities while managing risk.

The post Ark Invest Expands Holdings With $15.4M Robinhood Purchase And Bitcoin ETF appeared first on CoinCentral.